Insurance For Texans does a lot of work with bicycles. We play on them. We help the cycling community where we can. We love them really. The primary question that we are asked is can my Texas home insurance cover my bikes. This is a question that we never tire of, but also try to completely explain. So here is our best explanation for you.
The good news is that your base home insurance does indeed cover loss to bicycles. But as we seem to always say, there are some limitations that we should address first in this discussion. So here is the bad news.
If your home insurance policy does not have a bike specific endorsement, you will be subject to the provisions of the personal property coverage on your policy. So what are those?
- Some policies impose a sub-limit on specific items covered by personal property. So that $10,000 Moots may only be covered up to $2,500 or $5,000.
- Some policies have your personal property at actual cash value. That means your Yeti that cost $6,500 and is now only worth $2,000 won't truly get replaced.
- You will be subject to the perils covered by the policy. If the event that you are trying to claim against isn't covered by the perils in the policy, there is no coverage. This one really comes into play with things like crashes. Or maybe it fell off of the back of your car hauling the bike around. This loss can be very frustrating for bike owners as it seems unfair.
- The deductible for "All Other Perils" will have to be satisfied prior to any benefit being issued to you. In Texas, with percent deductibles in play, your claim may be approved and you not receive any money back from the company after the $4,000 deductible is enforced.
So The Good News Is...
There are a couple pieces of hope here for cyclists everywhere. The first is what is known as a personal articles floater. Some policies offer you the ability to schedule your bike or bikes. That means that you list out the bikes you own along with their stated value for the carriers to consider. They may require sales receipts or an appraisal, but what it means in the end is that several of the limitations listed above can be removed or drastically altered. Namely, the sub-limit, deductible, and perils covered. Since you've declared the actual value, the sub-limit will no longer be in play as the insurer has agreed to cover that value. The floater will also often reduce or eliminate the deductible and open up the perils covered. While crash replacement may still not be covered, many of the other scenarios that can result in needing a new bike are in fact covered. Oh, and that $4,000 deductible we mentioned earlier can be eliminated. If using this scenario, it is imperative to know and understand whether or not crash replacement is covered by the floater.
The second option is that there are now companies offering bicycle specific insurance that actually functions very similarly to an auto policy. It replaces crashed bicycles similar to collision insurance on an auto insurance policy. Yes, you read that correctly. While this policy is not part of your home insurance policy, it's very important to mention if you're riding a high value sled. As a mountain biker, we all know stuff happens just riding along. And JRA breaks are the most frustrating for riders since we aren't doing anything fun when it happens. There are other benefits available from these policies like medical coverage, but we see people get most excited about the crash replacement aspect.
I have been riding bicycles since I was four, and have more bikes than I should probably admit out loud in the garage. If you are concerned about properly covering your most prized possessions, schedule an appointment with me now to discuss. Insurance For Texans will gladly help you understand all of your options and guide you to the best solution. As an independent insurance agency, we offer comprehensive solutions rather than a single fix. Let us know how we can help you today!