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Bike Rack on SUVInterestingly, bikes that are mounted on automobile bike racks are often not covered by one's auto insurance. In certain scenarios, one's homeowners or renters policy will pay the claim. Let's look at a number of different situations and how insurance coverage is applied. Remember that, because insurance is state-regulated, laws governing these bikes and bike racks may slightly vary from state-to-state.

1. A bicycle that you own is damaged while it is attached to your vehicle

In this situation, it is more typically a homeowners or renters policy that pays the claim. If the policy includes "replacement cost" coverage (RCV), it will cover the cost to replace or repair the bike, less any deductible. If the policy provides for "actual cost" coverage (ACV), the depreciated cost of the bike will be used in the calculations. Because the difference between the RCV and the ACV of the bicycle can be substantial, it is important to understand the difference, which your independent insurance agent can help with.

2. Your bike is damaged by another vehicle while it is attached to yours

In situations where the other driver is clearly at fault, his or her auto insurer will pay you the full ACV of the bike. If the at-fault motorist is not carrying insurance, your own "uninsured motorist" coverage will apply (assuming you have it), and the full ACV can also be paid by your insurance company.

3. A different individual's bicycle is damaged while it's secured to your own vehicle

In this situation, the liability coverage provided in your auto insurance policy pays the ACV to the bike's owner, without any deductible. However, the bike's owner may not be pleased about only receiving the actual, depreciated value of his or her bike.

4. A hit-and-run driver damages your bicycle while it is attached to your vehicle

In this instance, your renters or homeowners policy will typically pay the claim. Usually, the amount paid is the RCV, less the deductible.

5. A bicycle secured to your vehicle is stolen

In this scenario, it is important to file a report with the police. Then, your renters or homeowners policy will typically pay the RCV minus the deductible. It is vital to report the theft in a timely manner to assure that your insurer will honor the claim.

Given the fact that deductibles are often in the $250 to 500 range, it is common to purchase a "floater" that specifically insures your bicycle. This special coverage pays the full cost of repairs or, if necessary, replacement. Racing bikes and other valuable bikes are often insured via a floater that's added to one's homeowners or renters policy.

Get the coverage you need. Call Coral Financial Group at (954) 345-2600 for more information on Coral Springs home insurance.
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