An identity theft reimbursement program is similar to insurance. In fact most identity theft reimbursement programs are underwritten by an insurance agency. They will provide a certain amount of money to cover out of pocket expenses.
Reimbursement programs only cover certain things like the cost of sending certified mails, phone charges, and sometimes court costs associated with correcting loan submissions.
Reimbursement programs usually have a deductible, money you have to pay before coverage begins.
Most reimbursement programs only pay you when you are done with your problem. However some will pay you lost wages for a couple of weeks, which usually is paid when you take it. If an identity theft reimbursement program is used this way, you will have to claim the income on your taxes.
