 TITLE: What Is Identity Theft Insurance? CONTENT: How Does Identity Theft Insurance Work?\n---------------------------------------\nIdentity theft can occur in several ways. Someone may steal your credit or debit card—or just the account numbers—to make purchases. Other thieves obtain information about you by gaining access to the computer systems where companies keep their customers' personal and financial information (a data breach). Once they have your information, they may be able to drive up your account balances, open new credit cards or take out loans in your name.\nSome crooks use phishing scams to lure you into revealing your information. These involve sending emails or texts that look like they're from legitimate companies, asking you to provide your personal and banking details for updates or promotions.\nNo matter the method used—you'll be the one stuck with the bill and any credit problems that might result.\nThis is where identity theft insurance comes in. Depending on the policy, it can help with a wide variety of circumstances involved in clearing up the matter, including:\n*   **Lost wages:** If you take time from work to fix identity theft issues, the policy can replace the income you didn't earn.\n*   **Notary fees:** You might need to get documents authorized by a notary, who will verify signatures on paperwork you need to send. The policy will likely cover the cost.\n*   **Mailing costs:** To ensure documents end up in the right place, you'll want to send them certified mail, return receipt requested. Identity theft insurance will usually pick up that cost.\n*   **Phone bills:** If you incur any phone-based expenses as you're dealing with this issue, they may be covered.\n*   **Child care:** If you need to pay someone to mind your children while you rectify the problems associated with identity theft, some insurance policies will even cover the cost of child care.\n*   **Credit monitoring:** A credit monitoring service will find out if your information is for sale, and will let you know if fraud is detected. Identity theft insurance typically includes it in the plan.\n*   **Legal fees:** Attorney and court costs may result from identity theft problems, and they can rack up fast. Many identity theft insurance policies cover them. END