Allstate Launches Identity Theft Expenses Coverage; Now, Homeowners Insurance Can Help Recover Your Identity

Business Wire, Sept 27, 2004

IRVING, Texas -- Three hundred million hours. That's how much time Americans spent trying to resolve problems created by identity theft in 2003. Allstate Insurance Company launched a new identity theft expenses coverage product, that the company says will help reduce the time ID theft victims spend trying to recover their lives.

In a first of its kind move, Allstate has partnered with a professional firm that specializes in addressing and correcting the effects of identity theft. This gives Allstate customers with identity theft expenses coverage access to this specialized service.

"The average identity theft victim spends 30 hours, spread over days and weeks, trying to correct problems caused by ID theft," said Rhonda Woodard, Vice President of Product for Allstate. "That is time taken away from their families, from their work, from their already disrupted lives. Allstate wants to give our customers the option of handing this difficult task to professionals that can do the work for you, saving time and making a difficult situation more bearable."

Allstate's new identity theft expenses coverage is available for Allstate homeowners and renters insurance policyholders for approximately $30 a year. It provides customers access to professional identity restoration assistance. If a customer chooses to do their own leg work, Allstate's policy provides up to $25,000 in reimbursement coverage for expenses incurred to restore their identity, including attorney fees, loan reapplication fees, credit report fees, and lost wages.

The new coverage is currently available in Texas, Illinois, Arizona, and New York, prior to a countrywide rollout over the next year.

Not an easy task...

What does identity restoration assistance do for victims? According to Federal Trade Commission data, only 13 percent (13%) of identity theft victims contact credit agencies after learning their personal information has been misused. Many victims of identity theft don't know where or how to start the recovery process. Here is some of what identity restoration professionals can do for victims of ID theft...

--Help victims understand their rights.

--File paperwork, including police reports.

--Issue fraud alerts to credit reporting agencies, Social Security Administration, Federal Trade Commission, U.S. Post Office, credit card companies, and banks.

--Work with credit agencies to correct and restore your credit.

--Review credit histories for irregularities.

--Trace Social Security numbers, notifying and working with the Department of Motor Vehicles, collection agencies, creditors and law enforcement personnel.

Be proactive...

Allstate's identity theft expenses coverage helps victims of ID theft recover their lives, but it is still up to every individual to protect themselves from criminals that may be looking to steal their identity. The following seven tips can help make you less vulnerable to identity theft...

--Don't carry unneeded credit cards.

--Cancel all your unused, lost, or stolen credit card accounts immediately.

--Keep your Social Security card, birth certificate, and other personal documents in a secure lock box or safety deposit box. Don't carry them, or duplicates, in your wallet.

--Check your credit history periodically and report any unauthorized activity. (There may be a minimal fee to obtain a copy of your credit report.)

--Keep careful track of all receipts. Store them in a safe place or destroy them before putting them in the trash.

--Do not give out your social security number to any person or company unless you are familiar with them and you have initiated the conversation.

--Never provide information to someone calling you on the phone or initiating contact on the Internet.

The Allstate Corporation (NYSE:ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate helps individuals in more than 16 million households protect what they have today and better prepare for tomorrow through more than 12,900 exclusive agencies and financial specialists in the U.S. and Canada. Customers can access Allstate products and services through Allstate agencies, or in select states at allstate.com and 1-800 Allstate(R). Encompass(SM) and Deerbrook(R) Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group provides life insurance, annuity, retirement, banking and investment products through distribution channels that include Allstate agencies, independent agencies, worksite, financial institutions and broker-dealers.