Ever think inexpensive Bicycle Insurance could save your Homeowner's Insurance?
To the cyclist who assumes their homeowner's policy provides their bicycle or eBike comprehensive insurance, you enjoy the ride, so now appreciate how to do so with peace of mind coverage. In this blog, government insurance administrations, insurance professionals, and business reporters define the impact homeowner's insurance claims may have on homeowner's nonrenewal. But, equally important, a wise solution is an inexpensive bike insurance policy that is just two minutes sign up away, which may help avoid costly and aggravating homeowner's nonrenewal.
Many insurance experts advise us to consider today's homeowner's insurance as 'catastrophic loss protection.' Therefore, knowing when to submit a claim on a homeowners insurance policy is crucial.
The Maryland Insurance Administration explains NONRENEWAL in A Consumer Guide To Homeowners Insurance. "Insurance policies are issued for a specific period of time or “term”. Homeowners insurance policies are usually issued for a term of 12 months. A nonrenewal occurs when an insurer decides it will not offer to renew your insurance coverage at the end of the current policy’s term."
As a rule of thumb, homeowner's insurance should be used for bigger losses following a peril that damaged your property. According to The Zebra article When should you file a homeowners insurance claim?
"Home insurance claims stay on your Comprehensive Loss Underwriting Exchange (CLUE) report, which contains up to seven years of claims history and helps insurance companies judge how likely you are to file another claim. If you rackup one too many, insurers can void your policy if they think you and your home carry too much risk. You may also be surprised to see a hike in your premium after filing a claim even if the cause of the claim is due to an unexpected or accidental incident — exactly what home insurance is meant to protect against."
The homeowners insurance policy is designed for sudden and unexpected large losses. In this current marketplace, homeowners need to be especially careful about filing a number of small claims over a short period of time. Most carriers have tightened their restrictions on the number of claims you can file before you are considered a higher risk customer or too high a risk, which could result in your homeowners policy being non-renewed. According to Rocky Mountain Insurance Information Association article Your Guide to Understanding Insurance.
That's essentially why they buy insurance: to pay for repairs they couldn't otherwise afford. If your claim is much higher than your deductible, you should file the claim. That's why you bought insurance in the first place, for an unforeseen event. Use this rule whether there's partial damage, such as tree damage to part of the home, or if there's a total loss like a fire. Better to save that arrow to slay the big dragon than use it for something small and run the risk of your carrier not renewing your policy or increasing your premium. Most insurance companies pay particular attention to the last three years of loss history on a Comprehensive Loss Underwriting Exchange (CLUE) report. According to The Washington Post article Why your homeowner’s insurance probably wasn’t renewed.
While insurance is meant to be a safety net to help protect against the unexpected, filing too many claims may cause your insurance company to discontinue your coverage based on your claims history. According to Progressive Insurance article Common scenarios for nonrenewal of home insurance.
If your insurer chooses not to renew your policy at the end of the term due to multiple claims, and you’re unable to obtain a policy from another home insurance company, you may be able to purchase coverage through your state’s Fair Access to Insurance Requirements (FAIR) plan or a state mandated insurance plan. According to PolicyGenius, "A FAIR Plan is the type of homeowners insurance you get when you’re not able to find coverage through a typical insurance company. Since they're typically more expensive and have lower coverage limits than standard home insurance policies, FAIR Plans are a good last-resort option for homes that don’t qualify for a standard policy."
Homeowner's policies often have high deductibles, multiple claims can lead to cancellation or nonrenewal, often have lower limits on certain individual items, and a claim can cause your premium to jump significantly. So, What does bicycle insurance cost? Bike insurance is relatively inexpensive when it may help avoid homeowners' nonrenewal.
BikeInsure is a cost-effective, standalone, primary insurance solution for your bicycle or eBike. The BikeInsure smart alternative provides the protection you need without compromising your homeowner's insurance.