Recent events have me considering how my present homeowner's insurance coverage deals with my bicycle. And as the bicycles seem to get more expensive the more I ride , the more concerned I am about being able to get replacement coverage (not Actual Cash Value) in the event of a loss.
This may vary state to state. In my state of NC and in particular with my HO insurance carrier, I have a $1000 deductible. My understanding is that I have replacement coverage, less my deductible. I believe the actual process is that they pay me the ACV (less the ded) and when I replace the bike, they pay the difference in cost between the ACV and the cost of the new bike. In effect, this limits me from using list prices, buying at a discount and pocketing the difference. Or so I understand. But I'm still out the amount of the deductible.
I got to looking at what it would cost to cover, for example, a $4000 bike under a separate policy (Marine Inland?) and I found the costs to be too pricey for me... around $300/year with no deductible, and around $280/year with a $50 deductible (the only option). With the way new bike costs are escalating each year, it wouldn't take but 2 or 3 years for that $4000 example to cost $5000.
So my options seem to be:
1) get a supplemental plan as above or
2) drop my HO deductible to $500 at an extra cost of ~$100/year on my current HO plan. That would limit my loss to $500 instead of $1000, but at a price.
Just curious what you folks do about this and if I've overlooked other viable options that may be more reasonable.