So with BTC there is no insurance or anything like that with your money? Basically anyone that has the knowledge to hack their way into your wallet/account and take your BTC they end up with it?
Correct. It's just like dollars or valuable jewelry in your house. If someone can hack their way into it they end up with it.
But as dollars or jewelry, you can, theoretically, insure them. It just happens that bitcoin is so new and unknown that I don't think there's any insurance available yet.