I don't think that game data should be backed up by insurance, because it's yer own daggum fault you didn't back it up with an illegal memory card-copying device.
But seriously, if someone were to swipe your memory cards and erase them, I think that there's a way around it: hide the cards. It's easy. Or, rather, make backup memory cards, and hide those. Remember, it's harder for them to get corrupted if there's nothing nearby to corrupt it.
However, I remember that something similar happened to me before. I was clearing out my PS2 memory card of unneeded game saves for games I don't have anymore or don't need, and I accidentally erased my RE4 data file. Sure, I had the progress saves themselves, but that means I lost all my Mercenaries high scores, as well as all the weapons I unlocked. That sucked, until I remembered that I backed it up another card. See, I tend to keep setting/data files on a seperate card, because, generally, stuff like that is harder to get back.