Glossary

Identity theft coverage

An optional add-on that reimburses the out-of-pocket costs of repairing your name and credit after someone uses your personal information to commit fraud.

Also called: identity fraud expense coverage, identity theft endorsement, identity restoration coverage

Identity theft coverage, which ISO calls identity fraud expense coverage, is an endorsement that reimburses what you spend restoring your name and credit after someone misuses your personal information. Many insurers also attach a restoration service that assigns a case manager to handle the paperwork.

It pays expenses, not the stolen money. Typical covered items are lost wages for time off work to sort things out, attorney fees to defend a suit or clear a record, notary and certified mail charges, credit reports, and fees to reapply for loans a fraud caused to be denied. Business-related losses and fraud committed by a family member are commonly excluded. Limits are modest, and a special deductible may apply.

Say a thief opens accounts in your name and you spend $1,800 on legal help, certified mail and unpaid time off (hypothetical). The endorsement may reimburse that, up to its limit. The fraudulent charges are a separate matter: federal law caps a consumer's liability for unauthorized credit card charges at $50, and the issuer or bank handles the rest.

Report identity theft at the FTC's IdentityTheft.gov, and see identity theft coverage on a homeowners policy before deciding whether the add-on is worth its premium.

Last reviewed October 10, 2026

In the index now

Related terms

Endorsement A written change attached to a policy that adds, removes or alters coverage, limits or conditions, and controls over the base form wherever the two conflict. Sublimit A cap on payment for one type of loss or coverage that is lower than the main policy limit, such as a set dollar amount for mold or sewer backup. Deductible The amount of a covered property loss you pay yourself before the insurer pays the rest, shown on your declarations page as a dollar figure or a percentage. Exclusion A policy provision that removes coverage for a stated cause, type of loss, property or circumstance that the coverage would otherwise reach.

Related guides

Deed fraud, title insurance and your homeowners policy How forged deeds steal homes, why homeowners insurance does not cover lost ownership, what owner's title insurance may cover, and the alerts that catch it. Home cyber insurance and cyberbullying coverage Home cyber coverage is an add-on for ransomware response, data restoration, online fraud and cyberbullying costs. What it covers, published limits and the gaps. Identity theft coverage on a homeowners policy Identity theft coverage pays recovery costs like notary fees and lost wages, not usually stolen money. Typical limits, exclusions and free alternatives. Theft and burglary claims under a homeowners policy Theft of belongings is covered anywhere in the world, and so is break-in damage to the house. Special limits, proof of loss and the deductible shape the payout.

Related insurers

Co-operative Insurance Companies Member-owned Vermont insurer founded in 1915 for Grange farmers, writing home, mobile home, farm and auto coverage only in Vermont and New Hampshire. The Hartford (AARP Homeowners Insurance Program) The 1810-founded Connecticut insurer whose home book is mostly the AARP Homeowners Insurance Program, sold direct to AARP members; no new business in CA or FL.