Does Homeowners Insurance Cover Identity Theft?
Standard homeowners insurance does not cover identity theft, but most insurers offer an inexpensive identity-theft endorsement that reimburses recovery costs and provides restoration help.
Add-On Required
By the Home & Dime Editorial Team · Updated 2026
What the add-on covers
- Costs to restore your identity (notary, mailing, lost wages, legal fees).
- Sometimes credit monitoring and resolution services.
What it doesn’t
It reimburses recovery costs — it doesn’t repay the stolen funds themselves, which banks and card issuers typically handle.
Common exclusions
- The stolen money itself (bank/card issuer covers)
- Business identity theft
- Losses without an add-on
State considerations
The endorsement is available in most states and usually costs $25–$60 per year — a low-cost add-on worth considering.
Claim tips
- Add the identity-theft endorsement before you need it.
- Keep records of recovery expenses.
- Report fraud to the FTC and your bank.
Frequently asked questions
Is identity theft covered automatically?
No — you need the endorsement.
Does it repay stolen money?
No — it covers recovery costs; banks handle stolen funds.
Related guides
Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.
Part of our Homeowners Insurance guide
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