Top 5 Benefits of Bike Insurance for Cyclists with Homeowners Insurance

Are you a Bicycle Owner with Homeowners Insurance? 

If so, you may be surprised to learn that your homeowner's insurance may not cover all the costs in the event of a bicycle accident or bike theft.

Issue: I know the feeling. I had a bike accident, and I was shocked to find out that even with my homeowner's insurance, it was my homeowner's insurance that could have the most damage by filing a claim.

Fortunately, the top insurance adjuster at my homeowner's insurance carrier educated me on the crucial variables that impact a homeowner's insurance claim. I hadn't filed a claim in over 20 years, but thanks to their guidance, as a cyclist, I now better understand how to protect my bike in the future.

Facts: Here are the facts about my bike claim and my homeowner's insurance policy: 

1. DEDUCTIBLE - My policy covered some specific bike claims, but my deductible was several thousand dollars.
2. PREMIUM INCREASE - If I filed a bike claim, my homeowner's insurance premium may increase when it's time to renew my policy.
3. NONRENEWAL - If I filed a second claim within three years (industry standard), the insurance carrier may not renew my homeowner's policy.
4. CLUE REPORT - If my policy were not renewed, my name and claim history information would be included in the CLUE Report. Insurance companies utilize this report to determine who to insure.‍
5. STANDALONE INSURANCE - Lastly, the homeowner's insurance adjuster shared the most defining 'post bike accident' sentiment that Homeowners Insurance is primarily Insurance for the Home. Getting standalone insurance may be a good idea for specialty items like bikes to ensure adequate coverage without compromising a home insurance policy.

Result: BikeInsure was created to fill a gap in the cycling market by providing a comprehensive and simple insurance solution for bikes. Cyclists can now enjoy complete peace of mind with coverage for accidents and the added option of protection against theft, all without impacting their homeowner's policy.

Hello there, I'm Buzzy Cohn, the Founder, and CEO of BikeInsure. I am happy to share how my personal accident experience as a homeowner with a bicycle led me to create America's best standardized Bike Insurance. As a cyclist, it's vital to have a separate bike insurance policy alongside your home insurance policy. BikeInsure offers complete coverage for your bicycle or eBike, protecting you from accidents and providing the option to safeguard against theft. The best part is that your home insurance policy remains unaffected!

Deductibles: BikeInsure is Low vs. Home Insurance is High

Does a BikeInsure plan have a deductible?

The comprehensive bicycle insurance plan has a per bicycle deductible. Therefore, in the event of a loss occurrence, you are responsible for the small deductible.

Insurance experts suggest viewing homeowner's insurance as protection against catastrophic losses.

Homeowner's policies often have high deductibles because "As a rule of thumb, homeowner's insurance should be used for bigger losses following a peril that damaged your property." via The Zebra article, When should you file a homeowners insurance claim?

• Policygenius.com - "A standard deductible is usually in the range of $500 to $2,500." 
• ‍Coastal Insurance - "Although home policy deductibles are sometimes $5,000 when we speak about homes valued under $1 million in reconstruction value."‍
• USnews.com - "For instance, a homeowner who insures their dwelling for $250,000 and has a 2% deductible will need to pay a $5,000 deductible before insurance kicks in."

Premium Increase: What impact does making a theft claim have on one's home insurance?

BikeInsure extends to a stolen bicycle with optional Bike Theft Insurance.

Bike Index - The non-profit bike registry reported, "According to the FBI, over 157k bicycles were reported stolen in the U.S. in 2019 (3.1% of all larceny thefts). The FBI values these bikes and their stolen parts around $350 million a year, but this value only accounts for those bikes reported stolen. It's unclear exactly how many bike thefts occur without being reported to police, but anecdotal evidence and our own experience show that it's a common occurrence."

What steps should bike owners take to safeguard their home insurance?

Although some homeowner's or renter's policies may offer limited bicycle coverage, they often only protect against theft when the bike is at the insured's home. Additionally, insurance experts say that filing a home insurance claim for a stolen bike could increase your premium significantly. 

To safeguard your bicycle or eBike, it's advisable to consider a standalone bike insurance policy, such as BikeInsure, which can provide coverage for theft without impacting your homeowner's insurance.

How much do claims increase home insurance rates?

‍

• TheZebra.com - "While having insurance protection on your property is vital, it works like a double-edged sword — the more you involve your home insurance company, the more expensive your rate will be for the foreseeable future. Therefore, it is crucial to understand which situations are worth filing homeowners claims for and which aren't."
• Bankrate.com - "Homeowners insurance rates often increase after a claim because it leads your insurance company to believe that you are more likely to file another claim in the future. This is especially true for water damage, dog bites, and theft claims. To compensate for another potential claim payout, the property insurer proactively raises your premium."
• TheZebra.com - "If you must file a claim, you should brace yourself for an inevitable rate increase. How much your premium will rise will depend on several factors. Continue reading to see estimates on how much you can expect to pay for homeowners insurance after a claim."

According to Insure.com, home insurance premiums increase on average by 27% after one theft claim and 55% after a 2nd theft claim.

Nonrenewal of home insurance is a serious issue that can negatively impact the quality of coverage for your most valuable asset.

Homeowners' insurance companies may have to cancel or non-renew a policy if multiple claims are filed within a three-year period, even though they value their customers who regularly pay their premiums.

Several years ago, BikeInsure offered a top ten home insurance company an opportunity to underwrite their bike insurance product. The most significant value of the standalone bike insurance product would benefit the insurance carrier by protecting against more minor bicycle claims that could affect their existing homeowner's insurance policies revenue. As such, the BikeInsure plan was a practical solution.

Bike owners familiar with Homeowner's Insurance Non-Renewal will appreciate the value of BikeInsure.

‍

• D.C. Municipal Regulations - Rule 26-A5000 - Permissible Reasons for Non-Renewal / Cancellation and Use of Claims History Information - "An insurer shall not refuse to renew a policy of homeowners' insurance solely due to claim or loss frequency unless there have been two (2) or more claims during the preceding three (3) year period."
• TheZebra.com - "Insurance companies get flighty if they look at your claims history and see more than one claim filed within the past couple of years — even if it was never paid out, and it was denied or unresolved. Filing a claim when you already have a few under your belt risks getting your policy non-renewed or voided, and you may even have trouble getting coverage elsewhere."
• Progressive.com - Common scenarios for nonrenewal of home insurance. "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."
• Rocky Mountain Insurance Information Association - The homeowners' insurance policy is designed for sudden and unexpected large losses. "Homeowners should exercise caution when filing multiple small claims in a short period of time due to stricter rules implemented by insurance companies. Exceeding the limit on claims could result in being classified as a high-risk customer and lead to cancellation of the homeowner's policy upon renewal."

Imagine your house being uninsurable by most insurance carriers.

If you own a home, it's crucial to steer clear of being added to the Comprehensive Loss Underwriting Exchange (CLUE). The smart solution is BikeInsure. It provides comprehensive coverage for your bicycle.

Applying for a BikeInsure plan is a quick and easy process that only takes two minutes to complete. Additionally, we do not ask the following:

1. No credit reports are required.
2. No social security numbers are requested.
3. No credit-based insurance scores are necessary.
4. No additional underwriting requirements.

Rest assured that making a claim for your bicycle through BikeInsure won't impact your homeowner's or renter's insurance policy.

Get a CLUE about your Home Insurance Claims History.

• ‍The Washington Post - Why your homeowner's insurance probably wasn't renewed. "Insurance companies focus on the most recent three years of loss history, which is documented in a Comprehensive Loss Underwriting Exchange (CLUE) report." 
• Arch Insurance Group - What Is A C.L.U.E. Report For Insurance? According to Stephanie Dunstan, the regional vice president of Arch Insurance Group, "If your C.L.U.E. report indicates claims, you should anticipate higher premiums and restricted coverage. She stated in a report to Forbes Advisor that some insurance companies may even refuse to provide coverage to customers based on their previous claims history."

Standalone Bike Insurance is how to protect your bike from accident or theft risks.

The BikeInsure policy is considered primary, which means that if you make a claim through BikeInsure, for example, it won't affect your homeowner's or renter's policy. This makes it an excellent option to safeguard your bike without compromising your insurance in case of a bicycle accident.

BikeInsure is an insurtech company specializing in bicycle accident coverage for cyclists in the United States. It's essential for cyclists today to have a standalone insurance policy to protect their new or used bicycles and eBikes.

With BikeInsure, you get damage reimbursement for repairs to your bicycle or eBike and accessories due to riding accidents or during transit. Moreover, the insurance plan extends to stolen bikes or eBikes when you select optional theft protection.