I woke up to find my hot wallet drained. My laptop had malware that logged my keystrokes when I typed my password. $8,000 in ETH gone. I called my home insurer, expecting my “Cyber” endorsement to pay. They said, “We cover data restoration and ransomware payments, not theft of digital currency.”
Key Takeaways
- Personal Cyber is Limited: Most “Cyber” add-ons to home insurance cover expenses (fixing the computer, credit monitoring), not the asset (the crypto).
- The “Unauthorized Transfer” Clause: You need a policy that specifically covers “Financial Loss due to Unauthorized Transfer.” Even then, many exclude crypto explicitly.
- Endpoint Security Requirement: If you didn’t have antivirus running, or if you were using pirated software, they can deny the claim for negligence.
- Blink by Chubb: Some modern policies do offer cyber financial loss coverage, but limits are often low ($25k).
The “Why” (The Trap)
The trap is “Hot vs. Cold.”
Insurers hate hot wallets (Metamask connected to the internet). They view it like leaving cash on a park bench.
Cold wallets (Ledger) are insurable. Hot wallets are considered “high risk” and often uninsurable for theft.
The Investigation (I Called Insurers)
I asked for a quote to insure a $50k hot wallet.
Blink (Chubb)
- Offer: Personal Cyber Insurance.
- Coverage: Covers “Cyber Crime” (theft of money).
- Caveat: I had to specifically ask if “Cryptocurrency” is included in “Money.” The answer was “Yes, up to a sub-limit.”
Evertas (Individual)
- Offer: They insure the wallet directly.
- Requirement: It usually must be a cold wallet or a custodial account. They rarely insure browser extension wallets due to the attack surface.
Norton 360 with LifeLock
- Offer: “Million Dollar Protection Package.”
- Caveat: Read the fine print. It usually covers funds stolen from banks, not blockchains.
Comparison Table
| Policy | Covers Metamask Theft? | Limit | Cost |
| Standard Home Cyber Rider | No (Data only) | N/A | $20/yr |
| Standalone Personal Cyber | Yes (Check Crypto def) | $25k – $50k | $300/yr |
| Identity Theft Protection | No (Usually) | N/A | $15/mo |
Step-by-Step Action Plan
- Nuke the Machine: If your wallet was drained, your computer is compromised. Do not use it for crypto again until it is wiped (factory reset).
- Move Remaining Assets: If you have other wallets, move them using a different device.
- Buy a Hardware Wallet: Stop using hot wallets for storage. Use them only for transit.
- [IMAGE: Photo of a Ledger Nano X connected to a laptop]
- Look for “Cyber Financial Loss”: When buying home insurance, ask for the “Cyber Financial Loss” endorsement and verify it includes “Digital Assets.”
FAQ
Can I trace the hacker?
You can see the address, but you can’t know who owns it unless they send it to a KYC exchange (Coinbase/Binance). Report the address to the exchanges.
Is Metamask liable?
No. It is a self-custody tool. You are the bank.