Madison, Wis. (Jan. 12, 2004) - American Family Insurance has added identity fraud coverage to its list of homeowners insurance products, the Madison-based insurer announced today.
"Identify fraud is a growing concern for our customers," says Vice President of Personal Lines Joe Zwettler. "This new product allows us to expand our promise of insurance protection, meet customer demand and stay competitive in the marketplace."
American Family policyholders can purchase identify fraud coverage as a separate endorsement to their homeowners policy. The endorsement, which costs $25 per year, provides up to $15,000 in coverage for expenses the policyholder may incur to address acts of identify fraud.
Covered expenses include attorney fees, loan reapplication fees, telephone and certified mail charges, notary expenses and lost wages for time taken off work to correct the fraud.
The endorsement does not provide reimbursement for expenses charged by the thief under the policyholder's name, such as credit card purchases or loans. These expenses are usually absorbed by banks and other credit grantors.
Following are several tips from the Federal Trade Commission (FTC) to help prevent identity fraud:
If your identity is stolen, immediately notify all creditors and financial institutions (in writing and by phone) that your name and accounts have been used without your permission. Report the crime to local police and the FTC. Ask utility companies to watch out for anyone ordering services in your name. Close any accounts that have been tampered with. And contact the fraud units of the three credit reporting agencies to request the placement of a fraud alert on your credit report.
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