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Hold your line!
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Discussion Starter · #1 ·
Having recently purchased a rather expensive bike (MSRP $6,929), I got to wondering how I'm protected if it were stolen, damaged, etc? Not only while at home, but in my car, while riding, sitting outside a convenience store, etc.

Is damage covered if I'm in an accident....similar to a car accident. I know that if the accident is somebody else's fault, then their insurance pays, but what if it's my fault or a no fault kind of thing? Is my bike covered in any way?

I also was wondering how it works as far as MSRP vs. depreciated value vs. replacement cost vs. original actual purchase price?

I called my ins agent and asked these questions and they were baffled. They didn't have a clue what's covered beyond the basic "if it's in your home and stolen or burned, it's covered". They said they were "going to check on that" and call me back. Not exactly the confidence building experience I was looking for from my ins. company.
 

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I Am a Meat Popsicle
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when I called my agent, he told me that all i have to do is "schedule" the bike for whatever value I want. Then, If something happens to it, it will be covered......
 

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duh...
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does homeowner's count? imo a claim and the increase in premium ain't worth it... nor is the extra addition to the original policy. plus, if you gotta rely on insurance for a replacement, you gotta ask whether you can really afford it
 

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Homeowners/renters insurance usually covers the bike. You should specify "replacement cost." That means they will replace your bike with whatever it costs currently to buy that bike.

Since the OP's bike is $6000, you may be able to specify a rider (pun not intended) provision to your insurance policy. Not sure about the specifics of that one so check with an agent.
 

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Hold your line!
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Discussion Starter · #5 · (Edited)
FatTireFred said:
does homeowner's count? imo a claim and the increase in premium ain't worth it... nor is the extra addition to the original policy. plus, if you gotta rely on insurance for a replacement, you gotta ask whether you can really afford it

I can afford it.....I paid cash and didn't even have to sell any children. I don't buy things unless I have the cash in hand (except a house). But that doesn't mean I don't want to protect my property/assets. Particularly larger assets. You imply that if you can't afford to replace your house or car without having to "rely" on insurance that you should never buy a house or car. Isn't that purpose of insurance?
 

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duh...
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jtsk said:
I can afford it.....I paid cash and didn't even have to sell any children. I don't buy things unless I have the cash in hand (except a house). But that doesn't mean I don't want to protect my property/assets. Particularly larger assets. You imply that if you can't afford to replace your house or car without having to "rely" on insurance that you should never buy a house or car. Isn't that purpose of insurance?


generally cars and houses cost a lot more than bikes, but maybe it depends on what you drive and where you live... and much of car ins is for liability. point is, if you consider a bike a large asset, well...
 

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To the OP, you should still get car insurance even if you can replace your car, because chances are, you can't replace that rolls royce that you totaled after you blew a red.
 

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Hold your line!
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Discussion Starter · #8 · (Edited)
FatTireFred said:
generally cars and houses cost a lot more than bikes, but maybe it depends on what you drive and where you live... and much of car ins is for liability. point is, if you consider a bike a large asset, well...
For now I just was wondering what others do to manage their financial risk on a major expenditure (the purpose of insurance).

FTFred - I didn't really expect to start a debate on social economic classes or be ridiculed (if only by implication) because my current financial situation dictates that I define a several thousand $ purchase as significant and that I might want to manage my risk. Wow! The view must be nice from up there on that pedestal.
 

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The only reason I have car insurance is for the medical aspect and the liability. I have nice cars, I always pay cash for cars. I could replace them if they were stolen or totaled, but the big if - is what would liability or medical costs be? Home owners insurance is similar (and yes, I did pay cash for my house). There would be many unknown variables if my home was burned, ALL the goodies inside, possible medial costs, living expenses while it is rebuilt. For a bike, like FatTireFred said, (hey that rhymes :) ) if you need insurance to replace it... Any liability should be minimal unless you are a bike ninja and cruise the MUTs at night with no lights. I gather you can handle the bike though. :) And in case of liability just get a blanket policy to cover you for all sorts of issues.

In any case your homeowner's coverage should cover theft no matter where the bike is stolen from, I doubt you can get a policy that would cover an accident caused by you and you break the bike in two. If you could it would probably be expensive. But maybe the home owner's does cover that.
 

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Your Homeowners or renters policy should cover your bike at home or away the exact same way and for the exact same losses as your other personal (non-real estate) property is covered whether it be furniture, electronics, clothes etc.

Personal Property losses will be paid either on the Actual Cash Value (depreciated) or Replacement Cost basis depending on what type of coverage you purchased on your Personal Property. Whatever the deductible is, it will also apply.

If you're told that the bike is excluded or that coverage on the bike is limited, ask for a copy of the policy marked to indicate the exclusion(s) or limitations(s) that apply.

Regardless of what you are told, the policy is a contract that will determine how any loss is settled.
 

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Hold your line!
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Discussion Starter · #11 ·
tornado said:
Your Homeowners or renters policy should cover your bike at home or away the exact same way and for the exact same losses as your other personal (non-real estate) property is covered whether it be furniture, electronics, clothes etc.

Personal Property losses will be paid either on the Actual Cash Value (depreciated) or Replacement Cost basis depending on what type of coverage you purchased on your Personal Property. Whatever the deductible is, it will also apply.

If you're told that the bike is excluded or that coverage on the bike is limited, ask for a copy of the policy marked to indicate the exclusion(s) or limitations(s) that apply.

Regardless of what you are told, the policy is a contract that will determine how any loss is settled.

Thanks Tornado.....Good info
 

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duh...
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jtsk said:
The view must be nice from up there on that pedestal.


it can get chilly at times and the wind can be brutal, but yes, the view is quite nice
 

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I have renter's insurance. When my bike was stolen it was not in the apartment, but my insurance covered it. I had a Replacement Value clause in the policy, so there was no depreciation calculated into the settlement, only a deductible. Check with your insurance company; it may be covered with your current policy or you can have a "rider" I think it's called, attached to your policy to specifically cover the bicycle. Be sure and specify you also want the Replacement Value stipulation, though that may have to apply to everything covered under the policy and not just the bicycle.
 

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Peter P. said:
Check with your insurance company; it may be covered with your current policy or you can have a "rider" I think it's called, attached to your policy to specifically cover the bicycle. Be sure and specify you also want the Replacement Value stipulation, though that may have to apply to everything covered under the policy and not just the bicycle.

uhhh.....so you mean what I said?:)
 

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Homeowners policy and Auto policy covers stolen or damaged. If you're seated when it gets damaged, you're paying for the repairs.
 

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eRacer
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Should be covered under Homeowners Policy.
Mine was.
 

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road bike resurrector
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I've considered it, especially when unruly drivers on I-95 like to ride 5 feet from my rear bumper @ 80mph.

The sad thing is some of those cars that do that to me are worth less than the bike on the back of my car.
 

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Insurance 101

Insuring a bike is a bad idea. It's virtually certain to cost you more than you would recover in the same way that you are virtually certain to lose money in a casino if you play long enough. The reason? Basic statistics.

Insurance companies almost never pay more than 60% of the premiums that they collect in losses (the rest goes to administrative costs, including bonuses, and profit). That means the average insured will pay out $1.00 for every $0.60 he can expect to receive.

Insurance is a great idea when the size of the potential loss makes it catastrophic, your home, a major illness or a big liability suit, for example. The loss of a $6,000 would certainly piss me off but my life would go on pretty much as before. Fred's point, albeit inelegantly stated, is essentially correct. There are many people in the world for whom the loss of $6,000 would be a disaster. There's nothing wrong with that but those folks probably shouldn't be spending $6,000 on a bike. If, like many of us, you're lucky enough to be able to afford to buy a $6,000 bike, you have the financial resources to withstand its loss.

Thus endeth the lesson for today. Go in peace.
 
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