This is true, but there are conditions for coverage to work. You need proof that your bike was secured and locked properly; a police report must be filed, and some cities won't do that; you need the original receipt of the bicycle and receipts for any accessories that were on the bike, along with a photograph of the bike; it's also wise that if you buy a new bike that you inform your agent of the purchase, which you should do for any large ticket item (along with receipts). Then after all of that you will have to pay your deductible, most homeowners policies today are either $500 or a $1000 deductible, so if your bike is worth less then that you get nothing so don't even bother going through the motions. If you have a very expensive bike that you lock up off premises of the home then you should consider a floater, a floater has no deductible, the bike is covered for appraised value at time of the floater purchase (you can update the appraisal if by some slim chance your bike increases in value); floaters covers anything that happens to the bike including accidents; the average cost is about $9 to $10 per $100 of coverage so if you have a $3500 bike it will cost you about $315 per year. But here's why I don't have a floater, I haven't had a bike stolen in over 40 years thus if I would have had a floater on my oldest bike that I bought new in 84 paying for this type of insurance would have bought me very nice bike, just in the last 10 years alone I would have spent about $3000 (prices went up very little in floaters for bikes) for a floater, then add to that 8 other bikes I own! No, the insurance is a rip off. The best thing to do to protect yourself from bad situation is like I said earlier...buy a cheap bike and lock it up at school or work, then you won't have to worry about it.

When I commute I take my bike right into my office, it's a great conversation piece too.