What is personal cyber insurance?

Personal cyber insurance covers financial losses from cyberattacks including identity theft, ransomware, online fraud, and data breaches. Policies typically cover recovery costs, legal fees, lost wages during recovery, and fraudulent transactions not covered by your bank.

Do I need personal cyber insurance?

If you bank online, store sensitive data digitally, or have significant digital assets, personal cyber insurance provides a safety net. The average cost of recovering from identity theft exceeds $1,000 and takes 200+ hours. Policies typically cost $5-25/month.

Personal Cyber Insurance Checklist — You're Already a Target

💼 Your homeowners/renters insurance doesn't cover cyber crimes. Personal cyber insurance fills the gap—$10-30/month.

📋 Understanding Cyber Insurance Coverage

Know what cyber insurance covers and what your other policies don't.

Understand what FDIC insurance coversFDIC covers deposits if your bank fails. It does NOT cover fraud. If hackers drain your account, FDIC won't help. Review your homeowners/renters insuranceCall your agent. Most policies exclude cyber-related losses, identity theft recovery, and fraud-related expenses. Understand what personal cyber insurance coversGood policies cover: identity theft recovery, legal fees, credit monitoring, lost wages, ransom, and network security incident response. Know the deductible and coverage limitsMost policies have $500-$1,000 deductibles and $25,000-$100,000 coverage limits. Higher coverage = slightly higher premiums.

🔍 Choosing & Reviewing Policies

Shop for policies and understand exactly what they cover before buying.

Get quotes from at least 3 cyber insurance providersHiscox, Travelers, Chubb, and Nationwide all offer personal cyber insurance. Prices vary widely—shop around. Read policy exclusions carefullyWhat's NOT covered is as important as what is. Look for exclusions on social engineering, password reuse, or unpatched systems. Verify the insurer's response servicesGood policies include access to lawyers, credit monitoring companies, and forensics specialists. Don't just look at price. Purchase personal cyber insurance$10-30/month for comprehensive coverage. For a family, this is one of the best security investments you can make.

📊 Family Planning & Documentation

Prepare your family for financial emergencies and document your coverage.

Create a financial disaster plan for your familyWhat happens if your identity is stolen? If you're a victim of ransomware? Have a plan before it happens. Document all your insurance policiesKeep a list: homeowners, auto, cyber insurance policy numbers and contact information in a safe place. Share policy details with trusted family membersIf you're compromised, someone needs to know what insurance you have and how to file a claim on your behalf. Review your cyber insurance policy annuallyPremiums, deductibles, and coverage change. Renew every year and consider shopping for better rates.

This checklist is from You're Already a Target by Corey White.

Take the Security Scorecard → Back to Master Checklist →