If your identity is stolen, two things determine how bad the next six months are: who does the recovery work, and who covers the losses. Restoration services answer the first: a specialist takes over the calls, paperwork, and follow-ups. Identity theft insurance answers the second: reimbursing certain out-of-pocket costs and stolen funds, up to the policy's limits.
What recovering from identity theft actually involves
Recovery is a project, not a phone call. For most people it means some combination of:
- Reporting the theft at IdentityTheft.gov to get an FTC identity theft report and recovery plan.
- Disputing fraudulent accounts and inquiries with each bureau reporting them (your right under the FCRA), and, with your FTC identity theft report, asking those bureaus to block the information that resulted from the theft.
- Contacting every lender and company where accounts were opened or taken over, often more than once.
- Placing a fraud alert or credit freeze, and sometimes filing a police report.
- Following up on all of it for weeks or months, keeping records the whole way.
What a restoration specialist does
Full-service restoration means you don't run that project alone. With Allstate® Identity Protection, after one hand-off, a dedicated restoration specialist manages your case from start to finish, no time limit: making the calls, filing the paperwork, and advocating for you at each step. In identity theft cases involving your credit report, that runs alongside your own FCRA dispute rights, not instead of them.
What identity theft insurance covers (and doesn't)
Identity theft insurance reimburses costs you incur because of the theft (things like legal fees, notarizing and mailing documents, and in many policies stolen funds) up to the policy's limit and subject to its terms and exclusions. What it doesn't do is undo the theft itself: the fraudulent accounts still need to be disputed and closed, which is exactly why insurance and restoration are packaged together. Read any policy's actual terms; coverage varies and may not be available in all jurisdictions.
Where your credit report fits
Your credit report is usually where identity theft becomes visible, and where it has to be cleaned up. Fraudulent accounts and inquiries are inaccuracies you have every legal right to dispute, and how a dispute actually works walks through that process. Checking your reports regularly is how you catch theft early enough to keep the project small.
† Identity theft insurance covering expense and stolen funds reimbursement is underwritten by American Bankers Insurance Company of Florida, an Assurant company. The description herein is a summary and intended for information purposes only and does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions.
Allstate Identity Protection is offered and serviced by InfoArmor, Inc., a subsidiary of The Allstate Corporation. Products and features are subject to change. Certain features require additional activation and may have additional terms.
Common questions
Does identity theft insurance pay back money that was stolen from me?
Many policies reimburse stolen funds as well as out-of-pocket expenses, up to the policy limit and subject to its terms and exclusions. Always check the actual policy, coverage varies and may not be available in all jurisdictions.
Do I still have to dispute fraudulent accounts on my credit report?
Yes. Insurance covers costs and restoration specialists do the legwork, but clearing the fraudulent entries off your report happens through the dispute (or, with your identity theft report, the identity-theft block) process, which is your right under the FCRA. Our guide on your rights under the FCRA explains what that covers. A specialist can drive the process; the right stays yours.
What does a restoration specialist actually do that I can't?
Nothing you legally couldn't, and that's the honest answer. What they bring is time, experience, and persistence: they know the process, make the calls, handle the paperwork, and follow up for as long as it takes, so recovery doesn't become your second job.
How would I know my identity was stolen in the first place?
Often the first sign is on your credit report: an account or inquiry you don't recognize. Our guide on how to spot identity theft on your report covers what to look for and what to do next.
