When you learn that your identity has been compromised, it can be devastating. Not only can this be incredibly unsettling and violating, but it can wreak havoc on your finances. As such, you may wonder if investing in identity theft insurance is worth it. The following blog explores what you should know about this kind of coverage, as well as the importance of working with an experienced California identity theft victim lawyer to help you fight for the justice you deserve.
How Can Identity Theft Impact Me?
Unfortunately, being the victim of identity theft can take a serious toll on your life, with it having the largest impact financially. When someone uses your personal information to open an account, it is not only an invasion of privacy, but it can decimate your credit. In most instances, victims of identity theft aren’t aware of the accumulating debt in their name until they are served papers by the creditor or a debt collector. At this point, your credit can drastically decrease, making it incredibly difficult to be approved for a loan, and your interest rates can be astronomical. You may even find that being approved for an apartment or mortgage is difficult, leaving you with limited housing options.
You’ll find that identity theft can also create significant issues for you, both physically and emotionally. It’s no secret that this is an incredibly stressful event, and as a result, you may suffer from insomnia, anxiety, and depression. Additionally, the stress you experience can cause cardiac events, resulting in medical bills and health complications.
How Does Identity Theft Insurance Work?
If you are interested in identity theft insurance to help you should your information is compromised, it’s important to understand how this kind of coverage works. Typically, auto or health policies help cover the cost of damage if you are in an accident or medical bills if you are injured. However, identity theft insurance does not cover any direct losses associated with identity theft. As such, you cannot receive compensation through your insurance for funds removed from your account or fraudulent purchases.
However, identity theft insurance does cover the costs associated with your recovery. This includes any lost wages you suffer if you must take time off work, the fees associated with replacing important legal documents, any fees imposed by your bank as a result of the theft, and even the legal expenses you incur.
As you can see, dealing with identity theft can be incredibly difficult. As such, working with an experienced attorney with Loker Law is in your best interest. Our team understands how overwhelming and difficult these matters can be to navigate, which is why we will utilize every resource possible to help you through these difficult times. Contact us today to learn how we can fight for you.
