Cycling is on the Rise … Do You Have the Coverage You Need?
As gasoline prices increase, more and more commuters are going green and saving by biking to and from work. Making sure you have the proper coverage is important!
“A bike can cost anywhere from a few hundred dollars for a basic model to several thousand dollars for a fast, light racing bike. In fact, in 2010 (the most recent data available) there was over $6 billion in bicycle sales in the U.S., according to the National Bike Dealers Association.
Fortunately, bicycles are covered under the personal property section of standard homeowners and renters insurance policies. This coverage will reimburse you, minus your deductible, if your bike is stolen or damaged in a fire, hurricane or other disaster listed in your policy. Under most policies, you would also be covered if the bicycle is stolen from your car.
There are two types of coverage for personal property:
- Actual Cash Value
Actual cash value reimburses you for what the bicycle is actually worth given its age. A 10-year-old bicycle, for example, would be valued at the cost of a comparable bicycle, minus 10 years depreciation.
- Replacement Cost Coverage
Replacement cost coverage reimburses you for what it would cost to replace your 10-year-old bicycle with one of like kind and quality at current cost. Replacement cost coverage costs about 10 percent more than actual cash value, but it is a good investment.
Homeowners and renters insurance policies also provide liability protection for harm you may cause to someone else or their property. If you injure someone in a bicycle accident and he or she decides to sue, you will be covered up to the limits of your policy. Most people have $100,000 to $300,000 worth of liability protection as part of their standard home or renters insurance policy. But higher limits are available to protect your assets. You may also consider purchasing either an excess liability or umbrella liability policy. These can be cost-effective way to raise your liability protection over the amount in your homeowners and liability policy. Your homeowners or renters insurance policy also includes no-fault medical coverage in the event you injure someone. This way, they can simply submit a medical claim to your homeowners insurance company without suing you. This coverage usually ranges from $1,000 to $5,000.
If you are purchasing a new bicycle, keep the receipt and call your insurance agent or company representative immediately. And keep in mind that bike accessories such as a helmet, pump, lights, saddle bag and clothing can add up and should be included in your insurance.
If you own a particularly expensive bicycle, you may want to consider getting an endorsement to your homeowners or renters insurance policy. A number of insurance companies have endorsements for sports equipment; some have endorsements specifically for bikes. The endorsement may have broader coverage and there will likely be no deductible. Your insurance agent or company representative can review your coverage options with you.
One of the best ways to make sure you are properly insured is to have an up-to-date home inventory of all your personal possessions. A home inventory can help you purchase the correct amount of insurance and make the claims filing process easier if there is a loss.” (www.iii.org)
At Van Beurden Insurance Services we want to make sure that you have the coverage you need when it matters most! Call one of our agents today to review your options!