A cyclists’ life – always ride insured
Everywhere you look, the bike lane has more traffic. It is expected, given the thousands of miles of new bicycle lanes in cities across the United States and the environmental benefits. Not only is riding a bike good for saving the planet and your hard-earned cash, but it is also one of the most effective and fun workouts you’ll ever do.
Bicycles are not the cheapest thing though; they can cost anywhere from several hundred dollars for a basic bike to thousands of dollars for specialized racing bikes. A cyclists’ life, everything from a commute to work, to an easy ride around the neighborhood to a serious workout while enjoying nature, comes with a set of important to understand rules of the road, as well as with a protection plan for the financial investment which involves, you guessed it, proper insurance.
The standard homeowners and renters insurance policies cover bicycles under the personal property section. This coverage will reimburse you, minus your deductible, if your bike is stolen or damaged in a fire, hurricane, or other disaster, as per your policy. This is why, if you plan on buying a new bicycle, you should remember to keep the receipt and call your insurance agency as soon as you complete the purchase. If your bike is an expensive one, you might want to consider getting an endorsement for additional coverage.
There are two types of coverage for personal property:
- Actual Cash Value – You receive what the bicycle is actually worth, taking into account its age. For example, a 5-year-old bicycle will be valued at the actual cost of a comparable bike, minus 5 years depreciation.
- Replacement Cost Coverage – You receive what it would cost to replace your 5-year-old bicycle with one that’s identical in like, kind, and quality at current cost. It costs about 10 percent more than the actual cash value, but it is a good investment.
On top of the coverage protection, renters insurance also provides liability protection in case you harm someone or their property. If you injure someone in a bicycle accident and the person decides to sue you, you will be covered up to the limits of your policy. The insurance policy also includes a no-fault medical coverage in case you harm someone. The policy coverage ranges from $1,000 to $5,000 per incident.
To avoid any unpleasant surprises in case you need to file a claim there are two things you need to keep in mind. First, you should save your receipts, including all expenditures related to the bicycle (i.e. helmet, patch kits, pumps). Second, is to add your bicycle to your home inventory with your insurance company to ensure coverage.
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