Identity Protection Insurance
Updated April 1, 2017 . AmFam Team
You probably have your ducks in a row when it comes to insuring your physical belongings — like your car or home. But, what about protecting your identity?
In today’s world, it’s easier than you might think for someone to steal your identity and sidetrack the dreams you’re pursuing. That’s why we’re here to help!
The Key to Identity Restoration
Identity restoration involves having a protection program in place in the unfortunate event your identity is stolen. The key to restoring your identity? Having identity theft protection. You can add identity insurance to your existing homeowners, condo, renters or manufactured home insurance policy — it’s smart, simple and affordable!
What Does Identity Theft Protection Include?
Proactively protecting your identity comes with its advantages:
Protects your pocket. This high-value, low-cost coverage helps protect against the high costs related to restoring your identity and good name. This endorsement covers expenses such as legal fees, loan reapplication fees, notary expenses and lost wages due to time taken from work to restore your credit.
Get support, save time, enjoy convenience. You’ll be making a lot of contact with businesses and credit reporting companies, which can take up a lot of time. With identity theft protection, you’ll have someone assigned to you to work with third parties like law enforcement, credit bureaus and collection agencies to help you get back on your feet again. They’ll work with you one-on-one to provide guidance through the resolution process, minimizing your stress, expenses and lost time.
Document replacement assistance. We’ll help you obtain new documents, like Social Security cards, birth certificates, passports and driver’s licenses if yours have been lost, stolen or compromised.
Proactive protection. We can’t stop identity theft, but we can help provide you with helpful resources, articles and tips on how to protect yourself from identity fraud. Starting with this guide to preventing identity theft!
Peace of mind. Having identity theft protection helps give you a peace of mind — because you know you have a plan in place. If your information were ever to fall in the wrong hands, we’ll be by your side every step of the way. Here’s a quick look at the identity theft recovery process, so you can see how identity theft coverage can help you overcome a number of obstacles.
How Much Does Identity Theft Coverage Cost?
Let’s put it this way. Adding identity theft coverage to your current policy will typically cost less than one dinner out with the family or friends. That sounds more satisfying than the appetizer you usually order, right?! Your agent will help you find the best, most affordable coverage.
Can You Add Identity Theft Protection to Renters Insurance?
Absolutely! You can add identity protection to your renters insurance policy with a simple call to your agent. Consider all the information you have stored online and on your phone, like social media accounts and banking. It’s not fun to think about, but there are many ways your personal information can be found and used. As a renter, having this protection gives you peace of mind that if your identity was stolen, we’d be by your side to help you recover.Experiencing identity theft is stressful, there’s no denying that. But with our help and resources, you’ll get back on track — and you won’t be doing it alone. Talk with your American Family Insurance agent (Opens in a new tab) to find out how adding identity theft protection to your homeowners coverage or renters insurance policy can help proactively protect you and your family.
This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.
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Can Student Loans Affect Buying a House?
Typically, student loan debt doesn’t prevent you from getting a mortgage. The biggest thing to note is that student loan debt does influence your debt-to-income ratio, which is a factor lenders consider before giving you a loan. It can also affect the interest rate you pay on your mortgage.
Buying a house with defaulted student loans
If you’ve defaulted on your student loans, it’ll be more difficult — but not impossible — for you to get a mortgage. Because defaulting negatively affects your credit score, lenders will be less likely to want to give you a loan or will charge a much higher interest rate on a loan.
Getting a home loan with student loan deferment
If you’ve deferred your student loans, this usually won’t affect your chances of getting a mortgage. Just be sure to consider how the future estimated payments will factor your debt-to-income ratio. Some types of mortgages may reject applicants with deferred loans, so do your research on the different types of mortgages before shopping.
Should You Pay Off Student Loans Before Buying a House?
Buying a house is expensive, there’s no doubt about that. It can seem smart to hold off on house shopping while you still have student loan debt, and it can be even more difficult to save for a house if you’ve got a high debt-to-income ratio. But if you have enough income to handle the payments for both, you may want to consider investing in your first home.
Signs You Should Pay Off Student Loans
When considering whether to pay student loans or save for a house, there are a few factors that can help you decide if paying off your student loans should be a priority.
Your debt-to-income ratio is too high
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You’ve defaulted on your loans
Defaulting on your loans has a severe negative impact on your credit score, which tells lenders that you’re a bigger risk to take on. Work on improving your credit score before shopping for a mortgage.
You’re struggling to make payments
If you feel like you’re living paycheck to paycheck or struggling to make payments on your loan every month, it’s best to hold off on saving for a house. Need help keeping track of your student loan payments? Try our student loan payment tracker to get organized.
You haven’t saved for a down payment or emergency fund
Before you start picking out which houses you want to tour, you should take a look at your savings. If you don’t have enough for a 5 to 10 percent down payment or enough as an emergency fund for home expenses — like a broken dishwasher or damaged roof — take more time to put money away for your first home.
