CYCLE VS HOME INSURANCE

One of the most frequent questions asked is, “What’s the difference between cycle-specific insurance vs just adding a bike onto your home insurance policy?”

We can understand why this is asked. Often, adding a bike onto your existing home insurance seems like a cheaper option, but are you aware of how the cover differs between the two?

Below is a comparison table between our PLUS cycle insurance policy vs two leading home insurers’ home insurance bike policies.

Disclaimer – Coverage are true as per a web search on 10/10/2023. All coverage is subject to terms and conditions.

It’s essential to check the level of coverage you have. The last thing you want to do is assume your bikes and kit are adequately covered, to then have a shock if you need to make a claim. Although not all home insurance policies are the same, here are the important things to look for within policy wording to give you the confidence to make the right decision for your needs.

What home insurance often doesn’t include compared to cycle insurance

Policy wording can often be a minefield to understand. We have made ours as simple as possible; not all insurers do. One area that causes confusion is the cover and exclusions for ‘cycles’. Read your home insurance policy wording carefully, as you may find that the definition of ‘cycle’ changes to ‘sports equipment while in use’ in the exclusions section. It is important to check this, as it may mean you are not covered while actually riding your bike.

Maximum cycle value

With your home contents insurance, there will often be a limit on the value of cycles you can cover. This can be as low as £500. Assuming your bikes are worth more than this limit, they may need to be declared explicitly on the home insurance policy, which can incur additional premiums. In many cases, home insurers will decline to provide cover for high-value bikes. Bikmo’s cycle insurance has a maximum cycle value of £30,000.

Cover away from the home

Many home insurers won’t cover you for theft or accidental damage when away from home, unlike a specialist cycle insurer, which is often the time you’d need it. If you currently cover your bikes under a home insurance policy, it is worth checking the underwriting guide to clarify the details around “away from home cover”.

Competition cover

Home insurers often exclude damage caused when participating in competitive or mass participation events. They’ll almost certainly turn down a claim if your unlocked bike is stolen from a race transition area.

Accidental damage

Many cyclists assume it is only theft that they’ll need to be protected against when it comes to cycle cover. However, at Bikmo, 49.25% of all claims come from accidental damage while riding the bike, a factor many home insurers don’t cover against.

Our Open Project 2022 claims data

Clothing cover

With a jersey, shorts, warmers, helmet, glasses and shoes, cycling kit can often be close to your bike’s value! Clothing is usually the first thing to make contact with the tarmac in a crash. Check the policy wording to see if your other expensive kit is covered.

An example of specialist cycling insurance in practice

Sarah bought a Trek Emonda SL 6, which she purchased at RRP of £2,100. One Sunday morning, a pothole gets the better of Sarah and the bike. As a result, Sarah has a nasty fall and an even nastier fall for the bike.

The damage – A scuffed saddle and handlebars, broken shifters, a bent front wheel and damage to the frame and rear mech. Sarah’s local bike shop has quoted £1,200 to repair the bike back to its original state.

How much would this have cost Sarah if she was on cover with Bikmo? An annual GO policy for a bike worth £2,100 would have set Sarah back £138.36/yr (equating to £11.53 per month, at 0% interest).

Home insurance premium increases – Your bikes may be one of the lowest-value items on the home insurance, but that doesn’t mean you won’t be stung with a hefty increase to your annual premium following a claim. Home insurers often increase your premium the following year if you have made a claim.

Home insurance excess fees – When using your insurance, the last thing you want is to be stung with a sizeable excess when claiming. Home insurers often apply high excess fees that can be up to the value of £500.

Bikmo policies

Is a specialist cycling insurance policy what you need? We’ve made signing up and managing a policy super simple. Insurance doesn’t have to be frustrating or a negative experience. Discover a life less ordinary with Bikmo.