My Bored Ape Yacht Club (BAYC) NFT was stolen via a phishing link. I bought it for $200k. At the time of theft, the “Floor Price” was $50k. But mine had “Gold Fur” (a rare trait), making it worth $150k. The adjuster looked at the floor price and said, “We’ll give you $50k.”
Key Takeaways
- Valuation is Chaos: Insurers default to the “Floor Price” (the cheapest item in the collection) because rare traits are subjective and illiquid.
- Agreed Value is Essential: Just like fine art, you must “Schedule” the NFT with a specific “Agreed Value” before the theft. If you rely on market value after the loss, you will lose.
- “Fungible” vs “Non-Fungible”: Claims adjusters struggle with the concept. They treat it like a share of stock (fungible). You must prove it is a unique work of art.
- The “Right to Click” Exclusion: Some policies exclude “intangible rights.” Since an NFT is technically a receipt pointing to a JPEG, they argue you didn’t lose “property,” just a pointer.
The “Why” (The Trap)
The trap is “Market Volatility.”
If your Ape was worth $200k yesterday and $100k today, the insurer will pay the lesser of the two. With NFT liquidity being low, finding a “Comparable Sale” (Comps) for a Gold Fur Ape is difficult. The adjuster will cherry-pick the lowest sale.
The Investigation (I Called Art Insurers)
I asked how they insure NFTs in 2026.
Lloyd’s (Fine Art Specie)
- Approach: They are starting to treat blue-chip NFTs (Punks, Apes, Squiggles) like Fine Art.
- Requirement: You need a specialized appraisal from a recognized NFT appraiser (e.g., DeepNFTValue). You pay a premium of 2-5% of the value annually.
Standard Homeowners
- Approach: “We do not cover electronic data or digital items.”
Comparison Table
| Valuation Method | Payout for Rare Ape | Availability |
| Floor Price (Standard) | Low ($50k) | Default |
| Trait-Adjusted | Medium ($80k) | Hard to Argue |
| Agreed Value (Scheduled) | High ($150k) | Must Pre-Agree |
| Purchase Price | N/A (Depreciation applies) | N/A |
Step-by-Step Action Plan
- Get a “Trait Appraisal”: Use tools like DeepNFTValue or hire a digital art appraiser to document why your specific NFT is worth more than the floor.
- [IMAGE: Screenshot of DeepNFTValue estimating price based on specific traits]
- Schedule the Item: Call a specialist broker (like Coincover or specialized Art brokers). Ask to schedule the NFT as “Digital Fine Art.” Do not leave it under generic coverage.
- Freeze the Asset: Report the theft to OpenSea and Blur immediately. They will flag the item with a “Suspicious Activity” mark, making it harder for the thief to sell, potentially aiding recovery.
FAQ
Can I buy the NFT back from the thief?
Insurers usually won’t pay the ransom/buyback price directly, but if you have “Kidnap & Ransom” coverage (rare), it might be negotiable.
Is it tax deductible?
Theft losses were largely removed from the US tax code in 2017, unless it was a business asset or a federally declared disaster. Check with a CPA.