I personally do not believe in Identity Theft Insurance. Considering that you are not responsible for unauthorized charges and that most likely you will have to clean up the mess yourself without incurring any actual expenses, what exactly do you expect ID theft insurance to pay you for?
Should we make this topic a bit more generic and include the steps one should take after discovering ID theft? I had written up and posted the following before, but it may need some refining:
Watch your accounts and dispute any unauthorized transactions.
Report ID theft to the local police department and record the report number (or get the full report if you can).
Get your credit reports (free once a year) and start monitoring your credit (free at freecreditscore, creditkarma, quizzle, creditsesame, etc). Verify that your reports are correct, dispute anything that isn’t.
Notify ChexSystems (may require the police report), get the report (free once a year), verify it.
Get a PIN for filing taxes with IRS (Krebs article). Make a habit of filing as early as possible, just in case.
Disable online access or get a PIN for accessing your SSA data online (Krebs article).
Report ID Theft to the FTC at identitytheft.gov. There’s more info and similar steps described with more detail.
All of these except 2, 8, and the first part of 5 can be done as a precaution even before theft occurs.
There’s already another thread here that may be referenced in steps 3 and 4.