Bitsurance: Bitcoin Insurance for Your Hardware Wallet

Description

Bitcoin insurance (BTC insurance) is designed to protect individuals and businesses against the potential loss of their Bitcoin holdings. This insurance can cover a range of risks, including damage to the hardware wallet where Bitcoin is stored, or in certain cases, theft, extortion, and other losses. While it is still a developing sector, BTC insurance helps secure your assets in case of unforeseen events.

How much does Bitcoin insurance cost?

The cost of Bitcoin insurance can vary depending on the coverage limits, risks insured, and the insurer. For example, Bitsurance offers coverage starting at €2.50 per month for up to €10,000 in Bitcoin, with higher coverage amounts, such as €100,000, costing €25.00 per month. The cost is typically linked to the value of your insured Bitcoin and the type of risks covered, such as fire, water damage, or extortion.

How to Insure Your Bitcoin?

To insure your Bitcoin, you’ll need to choose a BTC insurance provider that specializes in Bitcoin protection. Companies like Bitsurance offer such services, requiring you to use a hardware wallet for storing your Bitcoin. You will typically need to provide your wallet’s xPub (extended public key) to verify ownership, and the insurance policy will cover specific risks like fire, water damage, or extortion.

Can You Claim a Loss on Bitcoin?

Yes, if you have Bitcoin insurance and an insured event occurs (such as fire or extortion), you can file a claim with your insurance provider. The reimbursement will be based on the market value of your Bitcoin at the time of the loss, up to the coverage limit. However, it’s important to note that not all losses are covered — for example, simple theft or loss of your hardware wallet might not be included, depending on the policy.

Bitcoin Insurance for Individuals

For individuals holding Bitcoin, BTC insurance can offer peace of mind by protecting against specific risks. If you store your Bitcoin in a hardware wallet and are concerned about scenarios such as physical damage to the wallet or extortion, insurance can provide coverage. Be sure to review the insurer’s terms to understand which risks are covered.

Bitcoin Insurance Companies

Bitsurance offers a unique insurance product designed to protect your Bitcoin held in a hardware wallet. In the event of unfortunate incidents, Bitcoin insurance reimburses lost Bitcoins up to an insured amount in euros. With Bitsurance, your Bitcoin on your hardware wallet is insured for amounts up to €100,000.

How Bitsurance Bitcoin Insurance Works

Taking out Bitcoin insurance with Bitsurance is straightforward. You provide the necessary information, and your application is reviewed. Upon approval, a confirmation code is sent via email. After entering the code, the insurance coverage activates within minutes. However, coverage requires you to use a hardware wallet. Supported hardware wallets currently include Trezor, BitBox, and Ledger.

Bitsurance offers various coverage amounts, ranging from €10,000 to €100,000. These plans cover risks such as fire, water damage, and predatory extortion. It’s important to note that simple theft, loss of the hardware wallet, and damage exceeding the coverage limit are not included. The value of your Bitcoin at the time of the incident will determine the reimbursement, up to the insured limit.

To insure your Bitcoin, Bitsurance requires your xPub (extended public key) and a signature from your wallet. This allows them to verify ownership without needing individual wallet addresses. The xPub generates all Bitcoin addresses in your wallet, so the insurer can see your Bitcoin balance without needing access to every new address. If you’re uncomfortable sharing this information, it’s recommended to create a separate Bitcoin account for the insured coins.

In the event of a covered loss, you will need to file a claim, including relevant documentation such as a police report or fire department records. Currently, payouts are made in Euros, but Bitcoin payments may be an option in the future. The policy lasts for one year and automatically renews unless canceled three months before expiration. If a claim is approved, Bitsurance reimburses you based on the market value of Bitcoin at the time of loss.

What’s Covered by Bitsurance?

• Fire and Lightning Damage: Bitsurance protects your hardware wallet from fire, lightning, and electrical surges.
• Water Damage: Coverage extends to water damage, such as burst pipes or leaks.
• Predatory Extortion: Bitsurance protects against extortion attempts where coercion or blackmail is used to access your Bitcoin.

Bitsurance Fees

Bitsurance charges fees based on your coverage amount. For example, insurance for up to €10,000 in Bitcoin costs €2.50 per month, while coverage up to €100,000 costs €25.00 per month. These contributions are paid annually upfront.

Who Insures Bitcoin? (Bitsurance Alternatives)

Several companies are entering the space to offer Bitcoin insurance, recognizing the growing need for security in this digital asset sector. Some of the notable insurers include:

• Bitsurance: Specializes in Bitcoin insurance for hardware wallets, offering coverage for risks such as fire, water damage, and extortion. They reimburse in euros up to the insured amount, with a maximum coverage of €100,000.
• Coincover: Provides insurance services for digital assets, including Bitcoin, with a focus on protecting against hacks, theft, and loss. They work with wallet providers to offer coverage.
• Lloyd’s of London: Known for offering bespoke insurance policies, Lloyd’s has begun covering digital assets like Bitcoin through its various syndicates, protecting clients from potential loss.
• Evertas. The world’s first company dedicated to Bitcoin insurance, offering A+ rated coverage for emerging risks, built on enduring principles.

As the Bitcoin sector grows, more insurers are developing specific products to meet the needs of individuals and businesses looking to protect their Bitcoin holdings.

Is Bitsurance Right for You?

Bitsurance offers valuable protection for your Bitcoin against risks like fire, water, and extortion. It provides peace of mind knowing your assets are covered. However, it’s crucial to understand the limitations, fees, and exclusions in the coverage before deciding. Evaluate whether this type of insurance aligns with your personal needs and risk tolerance.