One in two Montreal cyclists has their bike stolen at least once in their lifetime. However, bike owners don't always think about insuring their two-wheelers. Whether you ride a lemon or a high-end machine, is your bike insured for its true value?
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Bike insurance included in your home insurance
In this case, your bike is covered by your insurance policy, just like other belongings. "It's not specific bike insurance, as home insurance policies offer basic coverage for bikes ranging from $1,000 to $2,000, depending on the insurer," explains Caroline Phémius, public affairs advisor at the Insurance Bureau of Canada.
Although your compensation would not exceed the amount stated in the contract, it could cover costs incurred during a theft, total or partial loss of your bike, regardless of the incident location.
When to claim compensation?
In addition to these limitations, several aspects must be considered before reporting a bike theft to your insurer, such as the value of your bike and the deductible stipulated in your contract, an amount remaining payable by the insured.
"If the bike is worth less than what you would be reimbursed, it's not worth making a claim," warns Ms. Phémius. If you bought a $500 bike and the deductible to pay is the same amount, you will receive zero compensation."
If, like most stolen bikes, yours is worth less than $500, you also have the option to reduce your basic deductible to set one specifically for the bicycle, as the insured chooses the amount of their deductible when signing their contract.
My bike is expensive
Carbon wheels for $2,500. A crankset for $1,500. A speed sensor for $1,000. Yes, some bikes cost more than a car. Do you own a high-value bike? You can add a clause to your insurance policy so that it is reimbursed at its full value.
"We don't add property to cover," says Ms. Phémius, "but an additional protection to home insurance that will allow the owner of a $7,000 bike to request an increase in the insurance portion for the bike to reach that amount."
It is at the discretion of each insurer to adjust the premium to the amount they agree to cover you for. "But it doesn't necessarily cost more" , adds Ms. Phémius.
The advisor at the Insurance Bureau of Canada reminds that despite the protections provided by home insurance policies, few tenants are insured, meaning few of them benefit from civil liability insurance.
"As a cyclist, it is extremely important to have civil liability, and therefore to be insured, because if you cause damage, you could be held responsible and have to pay a considerable amount for the damage caused," she concludes.
To discuss insurance coverage for your bicycle, please contact your insurer and discuss your insurance needs for your bicycles.
Video: some high-end bike thieves make short work of a bike locked on a car roof rack...
