While many people have bicycles, some are serious cyclists with expensive bikes, equipment and accessories. Whether you ride bikes for fun or are a competitor, you may be wondering if insurance can cover your bicycle if it’s stolen, damaged or destroyed. Does your home insurance cover your bicycle or do you need separate insurance?
In this article, we’ll discuss bicycle insurance including your options under your home insurance and when you may want additional coverage.
Are my bicycles covered under my home insurance policy?
Yes, bicycles are covered by your home insurance policy as they’re a personal belonging. Your bike is covered both while being stored at home and when it’s being used outside of the home. They’ll be covered for the same perils as your other belongings such as theft and fire. However, it’s important to be aware that this coverage may not be adequate if you have many bikes or they’re more valuable. There are a few things to check:
- Single Item Limit – This is the maximum amount that will be paid out in a covered claim for a single item. If your bicycle is valued over this limit, you may want to look into additional coverage.
- Policy Limit – This is the maximum amount that will be paid out in total for a covered claim. If you have very valuable bikes, you need to ensure your policy limit is high enough to cover your home and all of your personal belongings including the bicycles. You may need additional coverage.
Making a claim on your home insurance for a bicycle theft may also not be the best option. Depending on the value of the bike, it may be close to the deductible (the amount you pay before your insurance kicks in) and this type of claim may result in your home insurance premiums increasing.
Should I look into additional insurance coverage for my bicycle?
If your bike is valuable (more than $1500) you should look into additional insurance coverage for your bicycle. You may also want to get additional coverage if you travel with your bike. This allows you to add specific coverage to your home insurance policy to protect more valuable assets that may otherwise be underinsured given the limits of your single item limit or policy wordings.
How does a ‘floater’ help me better insure my bicycle?
If you require additional coverage for your bike above the sub-limits included in your homeowner’s or tenant’s insurance, you can add your bike as a scheduled item, called a ‘floater’. This is also sometimes referred to as a ‘property floater’ or a ‘sports equipment floater’.
Floater rates vary between insurance companies, and often come with lower deductibles than the homeowner’s policy deductible. Depending on the insurance provider, making a claim for your bicycle will not affect your premium.
This floater endorsement on your home insurance policy simply ensures the bicycle is insured to its proper value. Again, this is particularly helpful if your bike is worth significantly more than your policies sub-limits. To add a floater, insurers may request that you provide a receipt or valuation in order to prove your bike’s worth.
Discuss your bicycles with your insurance broker to see if you’re adequately covered or if you require additional coverage.