What types of expenses can identity theft insurance help an individual recover from?

Identity theft insurance is designed to help individuals recover from various expenses incurred when they fall victim to identity theft. One significant type of expense that this insurance covers is lost wages due to time missed from work while the individual takes necessary steps to rectify the identity theft situation. When someone becomes a victim, they may need to devote substantial time to dealing with the ramifications of the crime, such as placing fraud alerts, working with credit bureaus, or even engaging law enforcement. The lost income during this time can be financially burdensome, and identity theft insurance often provides compensation for these lost wages, making it a critical aspect of protection against the financial fallout from identity theft.

Other options, such as travel costs for workshops, costs for new identification documents, or tuition fees for credit counseling services, do not typically fall under the coverage of identity theft insurance. These expenses may be important in a broader financial health context but are not directly associated with the distinctive financial impacts of identity theft, making them less relevant as a primary focus of such insurance policies.