Why Homeowners Aren’t Buying Personal Cyber Insurance Despite Growing Risks

Personal cyber risks have grown far beyond simple identity theft. With the rise of smart home devices, homeowners are increasingly exposed to malware, phishing, and financial scams that can lead to extortion and significant financial loss. In fact, phishing remains the top reported cybercrime, according to the FBI, while average home cyber claims now exceed $10,000. Yet, despite this growing threat, adoption of personal cyber insurance remains slow.

A 2024 study by the Insurance Information Institute (Triple-I) and Hartford Steam Boiler (HSB) reveals a significant disconnect between agents and consumers. While 84% of agents believe in the value of personal cyber insurance, only 43% think their clients share that belief. Many agents are regularly presenting the product, but consumer uptake lags, often due to skepticism about value, lack of understanding, or concerns about coverage breadth and cost.

This gap in adoption reflects a dual challenge: consumer education and agent preparedness. Though most agents feel relatively confident explaining the product, fewer are fully comfortable selling it. As cyber risks become more prominent in public discourse, insurers and agents must invest in clear, targeted communication and training to build trust and drive adoption.

To close the protection gap, Triple-I and HSB recommend a threefold strategy: educate consumers about cyber threats and available coverage, equip agents with stronger training and communication tools, and refine product offerings using consumer data and feedback. As digital risks evolve, so too must the insurance strategies meant to protect against them.