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What is identity theft insurance?

Identity theft insurance helps cover the out-of-pocket costs of restoring your identity after fraud. It typically pays for lost wages while you work to clear your name, legal fees, notary and certified mail costs, and credit-freeze fees. It does not reimburse the actual stolen money (your bank or credit card company handles that), but it covers the recovery cost, which often runs $500 to $5,000.

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