Identity Theft Protection
Identity theft is the unauthorized use of another person’s identifying information to obtain credit, goods, services, money or property, and in California every form of it is a crime under Penal Code section 530.5. The Federal Trade Commission received more than 1.1 million identity theft reports in 2024.
The money a thief takes is usually recovered through the bank or card issuer. The cost that lands on the victim is the time, paperwork and legal help needed to clear the record, and that is what identity theft coverage is built to reimburse.
Coverage options to consider
Identity theft coverage is usually added to a homeowners, condo or renters policy by endorsement, where the insurer offers it. It reimburses defined expenses you incur because of an identity fraud first discovered during the policy period, up to the limit and after the deductible shown on your declarations page. It does not repay stolen money.
The standard industry endorsement reimburses expenses of these kinds:
What restoration services are and are not
Some insurers pair the endorsement with a resolution service that helps a victim place fraud alerts, contact creditors and replace documents. That is a service feature with its own terms, not a policy grant, and its provider and scope are set out in your policy documents.
Whether your policy includes one is a question your declarations page and endorsement answer, and we are glad to read them with you. The explained section below covers what the coverage pays, what it excludes, and the rights California gives a victim.
Identity theft coverage in California, explained
What does identity theft coverage on a California home, condo or renters policy pay for?
Expense reimbursement, added by endorsement where the insurer offers it. The standard industry endorsement reimburses defined expenses you incur because of one identity fraud first discovered during the policy period. Those expenses are the cost of notarizing affidavits, certified mail, and lost income for time taken off to complete affidavits or meet police, credit bureaus or counsel. They also include loan re-application fees where a loan was refused on wrong credit information, reasonable attorney fees, and long-distance calls. Your own endorsement controls, so read the form named on your declarations page rather than any general description, including this one.
Does identity theft insurance pay back the money a thief stole?
No. The standard endorsement excludes loss other than expenses, so stolen funds, fraudulent charges and fraudulent loans in your name are not covered by it. It also excludes loss connected with a business and expenses caused by an insured's own dishonest act. Recovery of the money itself runs through your bank, your card issuer and the federal liability limits for unauthorized use, and the Federal Trade Commission's recovery plan at IdentityTheft.gov walks through those steps. The endorsement pays for the work of clearing your name, not the theft.
How much does the coverage pay, and is there a deductible?
The standard form pays up to $15,000 per identity fraud, with lost income capped at $200 a day and $5,000 in total, after a $500 deductible. Insurers file their own versions, so the limit and deductible on your policy may differ. A series of related acts by the same thief counts as one identity fraud, and the form asks for receipts, bills or other records within 60 days of the insurer's request. The limit and deductible that apply to you are printed on your declarations page.
Are restoration services part of the policy?
Usually not. The standard endorsement contains no resolution specialist, document replacement help or cash advance. Some insurers pair the endorsement with a third-party resolution service that helps a victim place fraud alerts and contact creditors. That is a service feature with its own terms, not an insurance grant, and its provider and scope are set out in your policy documents. Only you can place a fraud alert or freeze on your own file, and a freeze restricts new credit rather than stopping misuse of accounts that already exist.
What rights does California give an identity theft victim?
Several, and most of them start with a report. Penal Code section 530.5 makes using another person's identifying information for any unlawful purpose a crime. With a police report or FTC Identity Theft Report in hand, Penal Code section 530.8 entitles you to records of accounts opened in your name within 10 business days. Civil Code section 1785.16 lets you have fraudulent items blocked from your credit file. Civil Code section 1788.18 makes a debt collector pause while it reviews your claim. Civil Code section 1798.93 lets you sue a claimant for a declaration that you owe nothing, with a civil penalty of up to $30,000 where the claimant ignored 30 days' written notice. The Attorney General's identity theft pages summarize each step.
Do I need a police report, or is the FTC Identity Theft Report enough?
File both. The FTC says its Identity Theft Report is sufficient documentation to resolve issues with the credit bureaus and most companies. In California you also have a statutory right under Penal Code section 530.6 to file with the police or sheriff where you live or work. They must take the report and give you a copy even if the crime happened elsewhere. That California report is the key to 12 free monthly credit reports under Civil Code section 1785.15.3. The endorsement's lost-income benefit is written around exactly this kind of appointment, so keep the receipts and the dates.
Is a credit freeze free, and how fast does it work?
Yes, under federal law since 21 September 2018. Under 15 U.S.C. section 1681c-1 a bureau must place a freeze within one business day of an online or phone request, or three business days by mail, and lift it within one hour online or by phone. You must contact all three bureaus for a freeze. A fraud alert needs only one bureau, lasts one year, and is also free, with a seven-year extended alert available to a victim who has an identity theft report. A freeze does not affect your credit score. California's own statutes still print an older fee and a 90-day alert, and the federal rules are the ones that apply.
What happens if a California business loses my Social Security number in a breach?
Two conditions apply: the business that notifies you was the source of the breach, and it exposed your Social Security, driver's license, state ID, passport or similar government number. If both are met, Civil Code section 1798.82 requires it to offer identity theft prevention and mitigation services, if any, at no cost for at least 12 months. Notice is due within 30 calendar days of discovery. Civil Code section 1798.85 separately bars businesses from posting your Social Security number, printing it on cards or mailings, or requiring it as a website password. For tax filings, anyone with a Social Security number can get a free six-digit Identity Protection PIN from the IRS, renewed each year.
The Civil Code and Penal Code provisions described in this and the preceding sections change from time to time. They are set out here as published by the California Legislative Counsel at the time of writing, and that office publishes the current text.
How do you add identity theft coverage through us?
Start a personal insurance quote or send us your current declarations page, and we check whether the endorsement is available on your renters, condo or homeowners form and what it adds to the premium. Availability depends on the insurer and the policy form, so we tell you which applies before you decide. If a resolution service comes with it, we show you where its terms sit in the policy documents.
Statutory references current as of September 2026 and specific to California; the credit freeze and fraud alert rules are federal. Limits and the deductible quoted are those of the standard ISO endorsement and may differ on your policy. No form text is reproduced.
