Go Back  Bike Forums > Bike Forums > Commuting
Reload this Page >

Don’t Count on Your Homeowner’s Insurance to Replace Your Stolen Bikes

Notices
Commuting Bicycle commuting is easier than you think, before you know it, you'll be hooked. Learn the tips, hints, equipment, safety requirements for safely riding your bike to work.

Don’t Count on Your Homeowner’s Insurance to Replace Your Stolen Bikes

Old 06-23-10, 12:58 PM
  #1  
BiketoFeel
Senior Member
Thread Starter
 
BiketoFeel's Avatar
 
Join Date: Nov 2009
Location: Durham, NC
Posts: 118

Bikes: 1997 Schwinn Homegrown, 1997 Roadmaster Little 500 track bike, 2004 Burley Rumba, 1997 Trek 730 MultiTrack, 90s Schwinn Moab MTB, 2019 DK Helio BMX, 80s Velo Sport Super Routier 12 Fixed Gear, 2000s Cannondale Touring bike, Late Model Giant TCR

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 1 Time in 1 Post
Don’t Count on Your Homeowner’s Insurance to Replace Your Stolen Bikes

A few weeks ago, a work buddy, with whom I regularly ride, had three bikes stolen out of his garage early one morning (You have to love Memphis, TN. I topped him a couple of weeks ago by witnessing a drive-by shooting on my block as my kids played in the front yard). Of course, he filed a police report, knowing that they would not nor could not do anything to recover his bikes. Once he received the completed police report, he contacted his insurance company, in this case State Farm, to determine if he should file a claim. Here’s how the math came out:

Bikes’ Worth: $1495

Deductible: $500

Loss of “No Claims”
Discount x 3 Years: $1131

Net Insurance
Payout: -$136 dollars

Yep, that’s right. My friend would have to pay the insurance company $1631 over three years to buy replacement bikes worth $1495, netting my friend the loss of 3 bikes plus $136 to the insurance company. After rejecting their offer to file a claim and pay them more money while still having lost his bikes, he asked what kind of insurance should he have had to protect against the loss of the bikes. They stated that he could purchase Personal Insurance on any item in the house but that the value of the item would have to exceed $3000 in order to qualify.

Take-away Message: Your homeowner’s insurance does not cover your bikes. If you rely on your bike(s) as transportation as I do, lock it up in your home or garage to an immovable object just as you do on the street.

http://www.biketofeel.com/main-blog/...-stolen-bikes/
BiketoFeel is offline  
Old 06-23-10, 01:02 PM
  #2  
bmclaughlin807
Crankenstein
 
bmclaughlin807's Avatar
 
Join Date: May 2006
Location: Spokane
Posts: 4,038

Bikes: Novara Randonee (TankerBelle)

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Just a little reminder in case anyone thought that the insurance companies are there for any reason other than to make money off of you......
__________________
"There is no greater wonder than the way the face and character of a woman fit so perfectly in a man's mind, and stay there, and he could never tell you why. It just seems it was the thing he most wanted." Robert Louis Stevenson
bmclaughlin807 is offline  
Old 06-23-10, 01:04 PM
  #3  
PaulRivers
Senior Member
 
Join Date: Jul 2008
Location: Minneapolis, MN
Posts: 6,282
Mentioned: 12 Post(s)
Tagged: 0 Thread(s)
Quoted: 439 Post(s)
Liked 4 Times in 3 Posts
Originally Posted by bmclaughlin807 View Post
Just a little reminder in case anyone thought that the insurance companies are there for any reason other than to make money off of you......
Yeah, seriously.
PaulRivers is offline  
Old 06-23-10, 01:04 PM
  #4  
wunderkind
Pro Paper Plane Pilot
 
wunderkind's Avatar
 
Join Date: May 2009
Posts: 1,645
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 1 Time in 1 Post
Elvis stole it.



It is Elvis impersonation time of the year again in Memphis.
wunderkind is offline  
Old 06-23-10, 01:15 PM
  #5  
HardyWeinberg
GATC
 
Join Date: Jul 2006
Location: south Puget Sound
Posts: 8,710
Mentioned: 29 Post(s)
Tagged: 0 Thread(s)
Quoted: 461 Post(s)
Liked 15 Times in 15 Posts
Sorry for your friend's hard time. Homeowner's insurance is pretty much designed to only be useful for a 5+figure claim. I've kept our deductible as high as I could get it (the broker tells me the bank holding our mortgage won't let us have a higher deductible than we do).
HardyWeinberg is offline  
Old 06-23-10, 02:25 PM
  #6  
CACycling
Senior Member
 
CACycling's Avatar
 
Join Date: Feb 2008
Location: Oxnard, CA
Posts: 4,564

Bikes: '08 Fuji Roubaix RC; '07 Schwinn Le Tour GS; '92 Diamond Back Ascent EX

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
Likes: 0
Liked 1 Time in 1 Post
I had a low level MTB stolen from my garage a number of years back. Called State Farm to file a claim. Stated replacement cost of bike, accessories on it and a check was sent for entire amount less $250 deductible. The lady even told me to call back if I found out the prices I'd given were too low to cover replacement. Never saw an increase in premiums because of it.
CACycling is offline  
Old 06-23-10, 02:40 PM
  #7  
lawrencehare
Senior Member
 
Join Date: May 2009
Location: Bethesda, MD
Posts: 134

Bikes: Campagnolo Mondia, Moulton TSR8

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
This prompted me to call my insurance company, Allstate. It seems I am fully covered for the replacement cost of the bike less the deductible, which for me is currently $500. This coverage is personal property so it is valid for theft from my home, or at work or some other place. I hope I do not need to use it, and I could lower the deductible at the cost of increased premiums, but I think this is fine for me...
lawrencehare is offline  
Old 06-23-10, 03:03 PM
  #8  
mijome07
Senior Member
 
mijome07's Avatar
 
Join Date: Sep 2007
Location: So Cal
Posts: 1,563
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 4 Post(s)
Likes: 0
Liked 3 Times in 2 Posts
Originally Posted by bmclaughlin807 View Post
Just a little reminder in case anyone thought that the insurance companies are there for any reason other than to make money off of you......
Yep, just like 'Lost Wages' (Las Vegas). They're in business to take your money.
mijome07 is offline  
Old 06-23-10, 03:18 PM
  #9  
CCrew
Older than dirt
 
CCrew's Avatar
 
Join Date: May 2008
Location: Winchester, VA
Posts: 5,342

Bikes: Too darn many.. latest count is 11

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Originally Posted by lawrencehare View Post
This prompted me to call my insurance company, Allstate. It seems I am fully covered for the replacement cost of the bike less the deductible, which for me is currently $500. This coverage is personal property so it is valid for theft from my home, or at work or some other place. I hope I do not need to use it, and I could lower the deductible at the cost of increased premiums, but I think this is fine for me...
I see the OP factored in one thing you may not have though. He appears to be losing a substantial existing premium discount as a result of the claim. Policy isn't going up, but the discount is lost, which is just as effective for an increase. And the insurance company can say "premuim won't rise" because in reality it isn't

Sucks really.
CCrew is offline  
Old 06-23-10, 03:51 PM
  #10  
JeffS
not a role model
 
JeffS's Avatar
 
Join Date: Oct 2006
Location: Portland, OR
Posts: 4,659
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 1 Time in 1 Post
Originally Posted by BiketoFeel View Post
Take-away Message: Your homeowner’s insurance does not cover your bikes. If you rely on your bike(s) as transportation as I do, lock it up in your home or garage to an immovable object just as you do on the street


How did you reach this conclusion? It sounds to me like the insurance company was willing to pay the claim.

That buying insurance costs more than self-insuring... well, that's prettymuch common sense as well.
JeffS is offline  
Old 06-23-10, 04:13 PM
  #11  
cs1
Senior Member
 
cs1's Avatar
 
Join Date: Feb 2004
Location: Clev Oh
Posts: 7,006

Bikes: Specialized, Schwinn

Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 181 Post(s)
Liked 9 Times in 8 Posts
Being in the business I can tell you to schedule your bikes separately. That way your contents can have a $500 deductible but the scheduled bikes can be at $0. Disgruntled State Farm customers are my best friend. You can't believe how many I write every week for exactly what the OP said.
cs1 is offline  
Old 06-23-10, 04:13 PM
  #12  
DoB
Senior Member
 
Join Date: Sep 2006
Location: Detroit, MI
Posts: 349
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
You need to understand that homeowners insurance is really just for losses that would wipe you out, like having the whole structure burn down. For this reason, I keep the maximum deductible possible because I know I would never file a claim on a loss of less than about $10,000.

Similarly, I drop collision and comprehensive on my cars once they reach a value of about $7000. In essence I am self-insuring for losses in this range.

The idea of filing a claim on a $1500 loss is ludicrous. Insurance policies designed to cover every little bad thing that ever happens would be prohibitively expensive.
DoB is offline  
Old 06-23-10, 05:03 PM
  #13  
Grim
Senior Member
 
Grim's Avatar
 
Join Date: Jun 2008
Location: Atlanta
Posts: 2,993

Bikes: Cannondale T700s and a few others

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
Likes: 0
Liked 1 Time in 1 Post
The Insurance trap...YOUR IGNORANCE

Insurance should be considered catastrophic use only. Even health insurance. Under $500 should be paid out of pocket. Example: The demand for insurance to cover $50 and $70 visits for colds and minor issues is a major part of what drives the cost up and people just cant grasp the fact that when you take a rate plan to get $25 deductible/copay you are going to have higher premiums that are likely to exceed what it would cost for 10 minor visits a year at $50 each.

Home owners insurance is the same deal. There is a threshold where you need to just pay out of pocket or expect a raise in premiums that will exceed your short term pay out from the claim.
Grim is offline  
Old 06-23-10, 05:29 PM
  #14  
aley
Goathead Magnet
 
aley's Avatar
 
Join Date: Nov 2005
Location: Albuquerque, NM
Posts: 670

Bikes: Surly LHT, Cannondale Caffeine F3

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Originally Posted by Grim View Post
The Insurance trap...YOUR IGNORANCE

Insurance should be considered catastrophic use only. Even health insurance. Under $500 should be paid out of pocket. Example: The demand for insurance to cover $50 and $70 visits for colds and minor issues is a major part of what drives the cost up and people just cant grasp the fact that when you take a rate plan to get $25 deductible/copay you are going to have higher premiums that are likely to exceed what it would cost for 10 minor visits a year at $50 each.
Only 10 visits a year? You must not have kids!
aley is offline  
Old 06-23-10, 07:37 PM
  #15  
bkrownd
kipuka explorer
 
bkrownd's Avatar
 
Join Date: Apr 2004
Location: Hilo Town, East Hawai'i
Posts: 3,297

Bikes: 1994 Trek 820, 2004 Fuji Absolute, 2005 Jamis Nova, 1977 Schwinn Scrambler 36/36

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Originally Posted by Grim View Post
Insurance should be considered catastrophic use only. Even health insurance. Under $500 should be paid out of pocket.
Actually, health insurance is the one that has paid claims both big and small for me. Maybe not all health insurance plans are equivalent, but if I was playing the first $500 out of pocket every time I'd be unnecessarily in a hole. The Big Picture for health insurance might be a mess, but as a healthy dude who's always paid in that's not MY fault.
__________________
--
-=- '05 Jamis Nova -=- '04 Fuji Absolute -=- '94 Trek 820 -=- '77 Schwinn Scrambler 36/36 -=-
Friends don't let friends use brifters.

Last edited by bkrownd; 06-23-10 at 07:40 PM.
bkrownd is offline  
Old 06-23-10, 08:03 PM
  #16  
Grim
Senior Member
 
Grim's Avatar
 
Join Date: Jun 2008
Location: Atlanta
Posts: 2,993

Bikes: Cannondale T700s and a few others

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
Likes: 0
Liked 1 Time in 1 Post
Originally Posted by aley View Post
Only 10 visits a year? You must not have kids!
Two and I have had a heart attack and have three stents. Insurance paid out nearly $100K on me in a 6 month period 6 years ago.
My whole family has been maybe 5 times in the last 12 months.
People go to the doctor too often. MRSA is a result of people going to the doctor too often and abusing antibiotics to the point that we have caused super bugs and infections. It circumvents our body's design to build immunity when we don't let colds and such run their course. Antibiotics need to be used when the body is failing to get rid of the problem on its own after that point.

My only trips to doctor office (not to see the actual doctor) in the last 3 years is flue shots, Blood tests because I am on statins and I am due for a physical. I am on group plan and I have no choice about the fact that I have a $25 copay. I would gladly take a lower premium amount to have a $70 copay. Unfortunately people are so hooked on that low copay they cant see the bigger picture that it cost them more in the long run in the cost of the premiums.

Yet when we have an issue like the bikes being stolen and somebody shows them the math it opens their eyes. The Health insurance is no different just MUCH more abused and people just don't do the math beyond "every time my kid has a runny nose I can go to the doctor for $25" and in the process weaken their immunity and cause more frequent illness that they run to the doctor for and do it all over again.

I get sick about once a year most years. It happens every spring. It is triggered by allergies. Lasts 3-4 days. I'm done with it. Nothing that the doctor is going to do is going to change the fact that I am going to be sick for 3-4 days. They are just going to prescribe drugs to hide the symptoms while my body takes care of the problem. I can buy OTC drugs that do the same thing. Why bother with the doctor?

but if I was playing the first $500 out of pocket every time I'd be unnecessarily in a hole.
I am not saying that you should pay up to $500 each visit I am saying you should come out of pocket that much a year before the insurance starts paying at 80/20 up to say a $2500 max out of pocket. That would make a HUGE dent in the cost to everybody

Last edited by Grim; 06-23-10 at 08:18 PM.
Grim is offline  
Old 06-24-10, 07:36 AM
  #17  
I-Like-To-Bike
Been Around Awhile
 
I-Like-To-Bike's Avatar
 
Join Date: Oct 2004
Location: Burlington Iowa
Posts: 28,095

Bikes: Vaterland and Ragazzi

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 11 Post(s)
Liked 273 Times in 170 Posts
Originally Posted by Grim View Post
Two and I have had a heart attack and have three stents. Insurance paid out nearly $100K on me in a 6 month period 6 years ago.[SNIP]
I get sick about once a year most years. It happens every spring. It is triggered by allergies. Lasts 3-4 days. I'm done with it. Nothing that the doctor is going to do is going to change the fact that I am going to be sick for 3-4 days. They are just going to prescribe drugs to hide the symptoms while my body takes care of the problem. I can buy OTC drugs that do the same thing. Why bother with the doctor?
Why didn't you follow your own medical advice and just let your body take care of your heart problem? Whatz up wit all those expensive stents? Maybe other people go to doctors because they need to.
I-Like-To-Bike is offline  
Old 06-24-10, 07:50 AM
  #18  
mikeybikes
Senior Member
 
mikeybikes's Avatar
 
Join Date: May 2009
Location: Edgewater, CO
Posts: 3,214

Bikes: Tons

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
My renter's insurance is awesome. Its through a company that our new complex has a deal with. We pay $12/mo. I called the company to ask about things like this, and our premiums won't rise and there aren't any hidden discounts or anything like that. We pay the $250 deductible, and they cover the rest.

Not that my bikes are worth much more than $250 to begin with...
mikeybikes is offline  
Old 06-25-10, 09:48 AM
  #19  
AndrewP
Senior Member
 
Join Date: Sep 2001
Location: Montreal
Posts: 6,521

Bikes: Peugeot Hybrid, Minelli Hybrid

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
Likes: 0
Liked 1 Time in 1 Post
About 18 yrs ago my daughter's $600 MTB was stolen from her workplace. My homeowners insurance paid $350, no hassle with no impact on premium.
AndrewP is offline  
Old 06-25-10, 10:10 AM
  #20  
StanSeven
Administrator
 
Join Date: Feb 2005
Location: Delaware shore
Posts: 13,262

Bikes: Cervelo C5, Guru Photon, Waterford, Specialized CX

Mentioned: 14 Post(s)
Tagged: 0 Thread(s)
Quoted: 676 Post(s)
Liked 114 Times in 96 Posts
State Farm is probably the worse large firm. Their coverage is awful and the example of how much it goes up (actually losing ths discount) is horrible. Take a look at Consumers Report for comparison among companies.
StanSeven is offline  
Old 06-25-10, 11:23 AM
  #21  
Seattle Forrest
Senior Member
 
Seattle Forrest's Avatar
 
Join Date: Mar 2010
Location: Seattle, WA
Posts: 20,056
Mentioned: 55 Post(s)
Tagged: 0 Thread(s)
Quoted: 9981 Post(s)
Liked 1,323 Times in 787 Posts
Originally Posted by BiketoFeel View Post
Once he received the completed police report, he contacted his insurance company, in this case State Farm, to determine if he should file a claim. Here’s how the math came out:

Bikes’ Worth: $1495

Net Insurance
Payout: -$136 dollars
You're in good hands with State Farm.
Seattle Forrest is offline  
Old 06-25-10, 11:26 AM
  #22  
Loose Chain
Senior Member
 
Loose Chain's Avatar
 
Join Date: Sep 2009
Location: USA
Posts: 2,071

Bikes: 84 Pinarello Trevisio, 86 Guerciotti SLX, 96 Specialized Stumpjumper, 2010 Surly Cross Check, 88 Centurion Prestige, 73 Raleigh Sports, GT Force, Bridgestone MB4

Mentioned: 5 Post(s)
Tagged: 0 Thread(s)
Quoted: 278 Post(s)
Liked 63 Times in 50 Posts
I learned long ago when I lived in Houston, keep the garage door down and leave nothing portable and valuable like a quality bike in the garage. My bikes live in the house.
Loose Chain is offline  
Old 06-25-10, 09:16 PM
  #23  
unterhausen
Randomhead
 
Join Date: Aug 2008
Location: Happy Valley, Pennsylvania
Posts: 19,059
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 4 Post(s)
Liked 146 Times in 124 Posts
I'd take the payment and switch insurers.
unterhausen is offline  
Old 06-25-10, 09:43 PM
  #24  
OldLog
Senior Member
 
Join Date: Jun 2008
Location: Indiana
Posts: 128

Bikes: Felt Z85

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
I would also take the payment and switch insurance companies. The Bs they are feeding you is a scare tactic. Take they money that is what you paid your money for. If they boost your rate switch.
OldLog is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
jontg428
General Cycling Discussion
14
02-01-19 01:58 AM
RobbieTunes
Classic & Vintage
60
08-01-16 01:14 PM
gaucho777
Classic & Vintage
19
12-06-13 07:45 PM
neilfein
General Cycling Discussion
9
09-28-10 08:24 AM
xizangstan
General Cycling Discussion
8
09-14-10 05:53 PM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.