I thought that I needed to insure my bicycle against theft. I’ve heard that bikes get stolen every day in my city and I want bicycle insurance to cover my investment. I am very careful about locking my bike up every time I get off of it. I use a really nice U-Lock and wear the key on a chain around my neck. I found out that one of my friends was dating an insurance salesman and contacted him with my questions.
I asked him about bicycle insurance and he said that my homeowners or renters insurance policy would cover my bicycle if it was stolen. He said that there were a lot of limitations and exclusions, though. He said that my bike would probably have to be stolen from my home to be fully insured.
I was thinking that if I had bicycle insurance and my bike was stolen, insurance money would buy me a new one. That turned out to be untrue. The agent I talked to told me that if my bike was covered, I would be reimbursed for the value of a new model, less depreciation for every year old my bicycle was. I’m thinking that, depending on the rate of depreciation, I may end up owing money if my old bike was stolen!
The agent I talked to told me that I had to maintain good records for bicycle insurance. He told me to take a photo inventory of my possessions and to keep receipts. He also said that any time I am making a claim against an insurance policy for theft; I need to have a police report attached to the form. It is also very important to be accurate when declaring the value of the property stolen.