Should I Insure My Bicycle?
Posted on Monday, September 25, 2017
Do you tear up singletrack trails, or put serious KMs on your road bike? Is it important that you shave off seconds on your trail or track time? Do you scrub your bike down after every ride, making sure you can see your reflection in it? Chances are that if you answered ‘yes’ to these questions, you care about your bicycle... a lot.
Have you considered how your Insurance Policy would respond if your bike was involved in a loss? In this blog post, we explain what your current Ayr Farmers Mutual Home, Tenant or Condo Plus policy covers, as well as how to get more coverage if needed.
WHAT IS ALREADY COVERED ON YOUR AYR FARMERS MUTUAL HOMEOWNERS, TENANTS OR CONDO PLUS POLICY?
Would it surprise you if we told you that you have coverage for a bicycle without having to do anything? If you are in possession of a Home, Tenant or Condo policy, you have coverage for your bicycle under the Personal Property section, subject to a specific limit, depending on the policy type (we will look at the Plus Policy in this blog post).
There is coverage built into your Ayr Farmers Mutual Homeowners Plus, Tenants Plus or Condo Plus policy up to a limit of $2,000 for your bicycle or unattached piece of equipment. Loss or damage to a bicycle is settled as Replacement Cost if a receipt substantiating the bike’s value is provided (Replacement Cost: the cost to repair or replace with a new article of like kind and quality, without depreciation applied). Your Personal Property Deductible applies to the total loss, which is the value of your bicycle.
Let’s illustrate with an example:
Someone steals your new carbon fiber road bicycle from your garage. You paid $3,000 for it last week… and you kept your receipt, of course! Your Personal Property Deductible on your Plus Policy is $500.
In this scenario, the loss is valued at $3,000. If we subtract the Personal Property Deductible of $500, we are left with $2,500; however, there is a cap of $2,000 on the policy. The payout to you in this scenario is a total of $2,000.
As you can see, this dollar limit may be ok for some bicycles. If your bike exceeds the policy limit, you may want to consider adding your bike to your policy for its full value.
WHAT OPTIONS ARE AVAILABLE FOR BETTER BICYCLE COVERAGE?
You have the option to add or schedule your bicycle on a Personal Articles Floater, which attaches to any Home, Tenant or Condo Insurance policy. This means that the Plus Policy cap of $2,000 will not apply to your loss. You will have coverage up to the value of your bike as per the Personal Articles Floater.
Why Schedule your bike? Here are three advantages:
- Lower Deductible
By choosing to schedule your bicycle on a Personal Articles Floater, you may choose a lower deductible. Ayr Farmers Mutual offers deductibles as low as $50 for a Personal Articles Floater.
- Keep your Claims Free Discount
If you make a claim on your Policy, it can impact your eligibility for the Claims-Free discount on renewal. By adding a Personal Articles Floater, losses apply to the floater only, leaving your Claims-Free discount intact.
- All-Risk Coverage
Your insurance policy may have Broad or Standard coverage for your bicycle and Personal Property, which is lower than All-Risk coverage. By scheduling your bike, you can take advantage of the All-Risk coverage. Again, in the event that your bicycle or equipment is damaged by an insured loss and you provide a receipt confirming replacement of your gear, it will be settled at its Replacement Cost, up to the limit of insurance purchased on the Personal Articles Floater.
HOW DO I INSURE MY E-BIKE?
It’s easy! An electric bike (E-bike) is insured on a Personal Articles Floater on your Home, Tenant or Condo policy. The bike itself must have the ability to pedal, which is the primary method of power for the bike. Otherwise, it would be considered an electronic motorcycle or moped, which the primary method of power would be a motor.
We need the details of your E-bike, including the year, make, model and serial number, along with its value.
For more information and answers to frequently asked questions about E-bikes, check out the Ministry of Transportation’s FAQ guide.
OTHER IMPORTANT BICYCLE INSURANCE CONSIDERATIONS:
Keep in mind, insurance policies cover sudden and accidental damages to bicycles. Mechanical failure of your bicycle or wear and tear, are losses that occur over time. A Property Insurance policy does not cover losses that could be prevented with ongoing care. Always maintain your bicycle to keep yourself and others safe on the road and trails.
The easiest way to substantiate the value for a bicycle is with a receipt. Imagine if your bike was stolen and you had many aftermarket and custom parts installed – would you remember the details of each part… not to mention, their value? Always file your receipts for your bike, gear and parts. It will make your life easier (and ours too) in the event of a claim.
*Disclaimer: Each person’s requirements surrounding coverage for their bicycles and E-bikes should be discussed with a Licensed Insurance Agent or Broker, in order to obtain a full understanding of the product(s) coverage being provided along with possible limitations or exclusions of that coverage. Contact your Agent or Broker today.