Does Renters Insurance Cover Bike Theft? Limits & Coverage Explained

Bike theft is astonishingly common in the US, where a bike is stolen every 30 seconds.¹ Whether you’re an avid biker or a weekend warrior, you may be wondering if renters insurance covers bike theft or damages so you can protect your bike.

Yes, renters insurance typically covers bicycles up to their actual cash value when damaged or lost due to a covered peril, depending on your policy’s limits. The bike must also be itemized on your policy, as it’s covered under the personal property section.

Whether it makes sense to file a claim for a stolen bike is another story because you have to factor in your deductible too. If it’s a relatively cheap bike and you have a $1,000 bike, it may make more financial sense to just replace it.

What Covered Perils Apply to Bicycles?

“Covered perils” is a fancy term used by insurance providers to refer to a set of predetermined natural disasters and other events. When your insured property is damaged, lost, or destroyed as a result of one, you have valid grounds for a claim. Insurers can change what qualifies as a covered peril at their whim, but there are some standard ones. Let’s briefly check out the most common covered perils below.

Bikes & Category Limits

As we mentioned, coverage for your bike depends on your policy’s coverage. Renters insurance divides personal property into categories with their own monetary coverage limits. This covers all items in that category. Limits are negotiated on a case-by-case basis, but $1,000 to $2,000 per category is common.

Another consideration is the type of bike. E-bikes may or may not be covered in the same category as regular bicycles depending on the insurer. The state also matters, as some states consider Class 3 E-bikes with speed limits and pedal assist up to 28 miles per hour to be vehicles. If you require motor insurance and a special license to drive it, auto insurance would be required and renters insurance would not cover theft.

Any valuable accessories covered by your policy would also count toward the total bicycle category limit, so keep that in mind when comparing potential insurers. If possible, you may be able to talk to the provider about a higher category limit for your bikes and accessories in exchange for a higher deductible or another concession.

Does Renters Insurance Cover Bike Theft Away From Your Home?

Yes, but at a reduced rate. Renters insurance technically applies to any covered items on your policy no matter where the item is. The sneaky part is that full coverage limits only apply at home. Most policies only cover up to 10% of the category limit when damage or theft occurs away from your dwelling, as per the policy.

For expensive bikes, you can spring for an endorsement that’ll protect them from covered perils at any location with no reduction in coverage. Some insurers don’t offer bike insurance, but you’ll have to ask around to see which do so that you can best protect your most valuable bikes. It seems silly that bikes are literally made for going places and yet require extra protection, but it is what it is.

What’s Considered a Bike?

Ah, yes, the million-dollar question: what’s considered a bicycle by insurance standards? Technological advances like the various classes of E-bikes have blurred the line between mopeds and bikes, and even insurance providers don’t have a consensus on what qualifies.

Lemonade, for instance, offers Extra Coverage for certain eligible E-bike models on their renters insurance policies. A more common provision is partial coverage, where your E-bike is only covered up to a certain limit.

Class 1 E-bikes with pedal assist and motors capable of up to 20 miles per hour are sometimes covered under your bicycle category limit. The less power, the more likely the insurer is to cover it, but every company is different.

Class 2 and 3 E-bikes with stronger pedal assist and motors are considered motor vehicles in some states, so they wouldn’t be covered under renters insurance policies under any circumstance.

Conclusion

Bikes are a fun and environmentally friendly way to travel while getting some exercise in, but insurance coverage is tricky to navigate. Regular bicycles are typically covered under renters insurance up to their category limit, and you can purchase endorsements to protect pricier bikes. E-bikes are in a gray area, and you should contact insurance companies directly for more specific information.

Featured Image Credit: tommaso79, Shutterstock