What is personal cyber insurance?
Personal cyber insurance is coverage usually sold as an endorsement on homeowners insurance that covers financial loss due to an internet security breach.
As our lives become more digital every day, the risk of your personal data being breached is growing. Personal cyber insurance coverage protects you from a wide variety of risks associated with our digital lives.
What does cyber insurance cover?
Personal cyber insurance covers costs associated with:
- Cyber attacks. Removing a virus from personal computers and tablets and restoring data lost in a breach.
- Cyber extortion. Responding to and paying for a ransomware attack, where a hacker holds onto data in return for a ransom payment.
- Identity theft recovery. Reimbursing financial losses connected to identity theft or phishing schemes.
- Cyberbullying. Supporting an individual who suffers a cyberbullying attack, including paying legal expenses, temporary relocation expenses or private tutoring.
- Online money transfer fraud. If you are scammed by someone claiming to be a friend or family member, insurance will help recover the money.
Coverage limits vary by provider. Limits range from $25,000 up to $1 million or more with some companies.
What isn't covered by personal cyber insurance?
Cyber insurance for individuals doesn't cover:
- Losses for which you are legally liable
- Losses due to confiscation of your property by legal authorities
- Loss of digital currency
- Anything that happens as part of a campaign for public office
- The actions of a household member, employer or coworker and other specific people listed in the policy
- Widespread cyber attacks
- Losses related to gambling, investments or transactions
How much cyber insurance do I need?
The amount of coverage you need depends on the risks. If you're a basic internet user who does some shopping online and is savvy about potential scams, your risk may be low. If you have teens in the house using the internet, do a lot of internet transactions like investments and banking, or have people living with you who are more likely to fall for an online scam, you should consider extra coverage.
According to the Insurance Information Institute (Triple-I), the average home cyber attack costs over $10,000.
How much does cyber insurance cost?
The average cost of cyber insurance ranges depending on the company and the amount of coverage.
Chubb lists the cost of its Blink by Chubb cyber insurance program as starting at $5.28 a month for $10,000 in coverage. It can cost less when it's endorsed on a home insurance policy, as little as $3 a month.
How to find the right cyber insurance policy
The best place to start you search for cyber insurance is with your current homeowners insurance company. Most major companies offer this coverage as an endorsement to a home or renters insurance policy; some may even include basic coverage in the standard policy.
If your current insurer doesn't have the coverage you need, or if you're already considering shopping around for new home insurance, the following home insurance companies offer personal cyber insurance:
- State Farm
- Chubb
- Hanover
- Allstate
- Mercury
- Arbella
- Safeco
- Travelers
- Nationwide
Most people will be fine with a basic endorsement on their home insurance. However, there are also standalone options out there as well. Some are sold by well-known companies. For example, Chubb's standalone cyber insurance, Blink. There are also cyber insurance companies that specialize in this type of coverage.
Sources
Insurance Information Institute. "Addressing the Personal Cyber Protection Gap." Accessed June 2025"
Frequently asked questions
Do I need personal cyber insurance?
Anyone can be the victim of a cyber crime, and in our digital world, cyber insurance is a smart purchase.
Is cyber liability insurance worth it?
As with all insurance, you hope not to need it, but it's well worth it should you be a victim of a cyber crime.
Helpful home insurance tools and calculators
