Are bikes covered under standard homeowners insurance policies?
As a new homeowner, I’m curious about what all is covered under my insurance. I have a bicycle that I’m very fond of and I worry about it getting stolen or damaged one day. Are bikes covered under standard homeowners insurance policies?
Yes, they are. The only place where you’d run into an issue is if they’re motorized, then you’d need a special type of policy. As for regular bicycles, they’re treated just like any other personal property under standard homeowners insurance policies. The difference with bikes is that you have the potential to cause injury or property damage with them. Your homeowners policy has liability coverage built in, including for incidents caused with your bike.
When and how does homeowners insurance cover bikes?
A standard homeowners insurance policy provides coverage for bikes in a few different ways. Bikes are treated as personal property under your policy, but they also have the ability to cause damage, so liability is a potential factor. We’ll take a closer look at the main ways homeowners insurance provides coverage for bikes.
Homeowners insurance covers bikes in the following scenarios:
Your bike is stolen.
Your bike is damaged by vandalism.
You cause injury to a third party with your bike.
You cause property damage to a third party with your bike.
Your bike is destroyed by a covered natural disaster.
Natural disasters commonly covered by homeowners insurance include:
Natural disasters typically not covered by homeowners insurance include:
Under the liability portion of your homeowners insurance, should a third party sue you for causing them injury or property damage with your bike, your policy will provide coverage for the legal fees. This coverage includes reimbursement for attorney and court fees, plus any amount you may be ordered to pay if you end up losing the lawsuit.
How much do I have to pay if homeowners insurance does cover a bike?
After paying your deductible, you’ll be responsible for paying any amount exceeding your homeowners insurance policy’s limit for personal property. It’s important to keep in mind that if someone breaks into your home and steals a bunch of stuff, the values for all that property will add up quickly. If you have a lot of highly valuable items, you might want to increase your coverage limit in the personal property category.
A standard homeowners policy has a deductible that’s typically 1% of the home’s value, so if your home is worth $300,000, you might have to exceed $3,000 in stolen or damaged personal property before your insurance will start paying. You could easily lose lots of money this way. If you own lots of valuable property, it’s a good idea to work with an experienced independent insurance agent to get a policy with a lower deductible.
If homeowners insurance doesn’t cover my bike, what will?
Your bike will be covered up to your homeowners insurance policy’s limit for personal property, but your bike’s value could easily exceed that, especially if it’s lumped in with a bunch of other property you need to get reimbursed for at the same time. Even though your standard homeowners insurance will protect you, your specific policy might not provide enough coverage for you.
Personal property limits are typically 50%-70% of the amount your home’s actual structure is insured for. Some insurance companies may limit this much further, though— to as low as 10%. If your home is insured for $300,000, then between $150,000 and $210,000 might be allocated for all of your personal property, but it could be as low as $30,000.
Talk to your independent insurance agent about your concerns about getting enough coverage for your bicycle, along with the rest of your personal property. They’ll be able to help you figure out the best way to get more coverage, whether that involves getting a policy with a lower deductible, or increasing your existing policy’s limit.