Due to the popularity of the Internet and the increasing frequency of electronic financial transactions, identity fraud is a growing problem. "Identity fraud" means knowingly using, without lawful authority, some means of identification of a covered person with the intent to commit an unlawful activity that is either a violation of federal law or a felony.

Although the victim may not be liable for money stolen, it can cost the victim a lot to prove the fraud and restore a damaged credit rating.

That’s what identity fraud expense coverage is for.

Pays up to $20,000

• Lost Wages Up to $500 per week for up to four weeks for wages lost if you have to take time off from work because of identity fraud to meet with law enforcement agencies, credit agencies or legal counsel, or to complete affidavits. 
• Loan Fees If you are refused a loan because the lender received incorrect credit information due to identity fraud, and you have to re-apply, any cost for new application fees is covered.
• Attorney Fees Reasonable attorney fees, with prior approval from Encompass, to defend you against lawsuits brought by merchants or collection agencies, or to remove criminal or civil judgments wrongly entered against you, or to challenge consumer credit reports you believe are inaccurate or incomplete.
• Other Fees

The cost of notarizing fraud affidavits or similar documents, if that is required by a financial institution or credit agency; and the cost of certified mail for sending required documentation to law enforcement, financial institutions or credit agencies; and long distances charges for calls you have to make to merchants, law enforcement, financial institutions or credit agencies to report or discuss an identity fraud.

For more information about Encompass Identity Fraud Expense coverage, contact your independent insurance agent. Identity Fraud Expense coverage is not available at this time in the State of Texas.