Most homeowners insurance policies protect you against
the loss of your personal property if your items are stolen.
For example, if a thief breaks into you home and steals
items such as a television or laptop, your homeowners
insurance policy will generally provide coverage. But what
if the thief gains access to your cryptocurrency on your
stolen laptop? Or someone hacks into your computer and
steals your cryptocurrency?
CONSUMER ADVISORY
CRYPTOCURRENCY AND YOUR
HOMEOWNERS INSURANCE
800-492-6116 Toll-free
insurance.maryland.gov
Your homeowners insurance may not cover such a loss. While the IRS does define cryptocurrency as
personal property for income tax purposes, not all personal property is treated in the same way under a
standard homeowners insurance policy. Terms and conditions vary between homeowners insurance
policies. Many homeowners policies limit the amount of coverage for currency instruments, such as
cryptocurrency, to $1,000 or less while other policies may offer no coverage at all.
It is a good idea to read your homeowners policy to determine if it offers any coverage for loss of
cryptocurrency. Marylanders who hold cryptocurrency may also want to consider hot storage options,
such as having a commercial third party hold the currency in a digital wallet. These entities can often
protect your cryptocurrency with crime or cyber insurance – insurance that is largely unavailable to
individuals. Owners of cryptocurrency may also want to consider offline cold storage options, such as
securing electronic devices in a theft and fire-proof safe.
If you have more questions, please reach out to your insurer or insurance producer (agent or broker) for
details about your specific policy.
According to a recent survey by the Insurance Information Institute, nearly ten percent of American
adults have invested in cryptocurrency since 2009. Often consumers think of Bitcoin when they think
of cryptocurrency, but that category includes other forms, including Ethereum, Litecoin, Dogecoin,
and many others.
