ID theft insurance protects you from losses if somebody steals your ID and runs up expenses on your accounts. Although this may come in handy for some, we do not recommend this type of insurance.
This insurance only covers attorney fees and the cost of repairing your credit, up to $25,000. It does not even cover your actual losses.The premium on this type of insurance are usually around $25-$50 per month. The average loss if your ID is stolen is only $750.
You also, already, have significant protection. If somebody manages to get a mortgage using your ID, you are not liable for that. If your credit cards are run up, you are only liable for $50.
To protect yourself, if you are concerned, keep a close on your credit report. You can get a free credit report at http://www.annualcreditreport.com or there are various services that will monitor it for you. If you see something there that is not right, you can correct it yourself, much more easily and faster than through insurance.