a method of insuring an insured for identity theft peril . the method includes submitting a claim of identity theft by an insured to an insurer . thereafter , the method includes the step of investigating the claim of the identity theft peril to verify the identity theft peril . in response to the identity theft being verified , the method includes performing an identity reclamation and a credit restoration process . further , in response to the identity theft being verified , identifying monetary loss by the insured . thereafter , dispersing the insurance benefit having a value proportional to the monetary loss . the present invention includes a method for identity reclamation and credit restoration which includes the establishment of a variety of databases having form letter shells for a population of credit bureaus , a population of credit card issuers , a population of financial banking institutions , and a population of utility companies , retailers and other specialty merchants .