My digital wallet was hacked, and I lost a Bored Ape worth $60,000. The next day, a power surge fried the $2,000 Samsung Frame TV displaying it. I filed a claim for both. The insurance company paid for the TV but laughed at the NFT claim, citing the “Virtual Currency and Data” exclusion. In 2026, the line between physical display and digital asset is the hardest battleground in insurance.
Key Takeaways
- Hardware vs. Asset: Your homeowner’s policy covers the screen (electronics). It does NOT cover the NFT (intangible property).
- Cyber Coverage is Separate: You need a specific “Digital Asset” or “Cyber” policy to cover the theft of the NFT.
- The “Cold Storage” Requirement: Most NFT insurers will only cover assets if they are kept in a hardware wallet (like Ledger), not a “hot wallet” connected to the internet.
- Display Risk: If the screen malfunctions and “burns in” the image, the screen is damaged. The NFT is fine.
The “Why” (The Trap): The Tangible Property Clause
Standard ISO policies cover “direct physical loss to tangible property.”
In 2026, insurers still argue that an NFT is code, not property. Even though you paid $50k for it, it has no physical mass.
Therefore, theft of an NFT is treated like “loss of data,” which is excluded or capped at $500.
[IMAGE: Diagram showing the separation of insurance: Policy A covers the Screen, Policy B covers the Private Key]
The Investigation: I Called Them
I looked for who is actually insuring the JPEG in 2026.
1. Coincover / BitGo
- The Product: Specific crypto insurance.
- The Coverage: Covers theft of private keys and hacking.
- The Catch: Does not cover “user error” (e.g., you sent it to the wrong address or fell for a phishing scam).
- Verdict: Essential for high-value wallets.
2. Lloyd’s of London Syndicates
- The Product: Specie / Fine Art policies that now include NFTs.
- The Requirement: They view the NFT as art, but they require custody solutions (like institutional vaults).
- Verdict: For the serious collector ($1M+ portfolios).
3. Lemonade / Hippo (Tech-Forward Home)
- The Product: Standard home insurance.
- The Limit: They generally cap “electronic data” at $1,500.
- Verdict: Useless for blue-chip NFTs.
Comparison Table
| Item | Standard Home Policy | Cyber/NFT Policy |
| The TV Screen | Covered (Fire/Theft/Surge) | Not Covered |
| The NFT (Hacked) | Excluded / Capped at $500 | Covered |
| The NFT (Phishing) | Excluded | Often Excluded |
| Loss of Access (Lost Password) | Excluded | Excluded |
Step-by-Step Action Plan
- Segregate Assets: Move long-term hold NFTs to a “Cold Wallet” (offline).
- Buy a Cyber Rider: Ask your agent for “Personal Cyber Insurance” with specific endorsements for digital assets.
- Screen Protection: Ensure your display screens are covered under “Electronics” on your home policy.
- Keep Records: Save the transaction hash and the purchase price in fiat currency at the time of purchase. Insurance pays in dollars, not ETH.
FAQ Section
If the NFT market crashes, can I claim the loss?
No. Insurance covers theft or loss of access, not market volatility.
Is a smart contract failure covered?
If the smart contract gets hacked (e.g., a bridge exploit), some high-end DeFi insurance covers it, but personal policies do not.
What if I lose my seed phrase?
You are out of luck. Almost no insurer covers “loss of keys” due to your own memory loss or negligence.