Protecting Your Bike from Theft Today: Does Renters Insurance Cover Your Dream Bike?

Does renters insurance cover theft of bike in 2024?

Does renters insurance cover bike theft? Yes, bike theft is covered by the homeowner’s as well as renters insurance with a few exceptions.

A bike is included in the individual property portion of homeowners or renters insurance, and theft is a protected claim. But, based on the worth of your bicycle and the amount of your deductible, it may not be a good idea to make claims.

A bicycle that is stolen is usually protected for the actual cash value, less your deductible under your personal property insurance under insurance policies like your homeowners insurance, condo insurance as well and renters insurance policy.

Some insurance companies may have a limit – for instance, $1500 for bicycles. If your bike exceeds $1500 and you want to add the insurance rider to your renters or homeowners policy could help make sure you are covered.

If the cash value of your bicycle is lower than your deductible, then your insurer might not be able to cover the cost of loss. There are more than two million bicycles are stolen every year across North America, so check with your insurance provider to find out the extent of your bicycle’s coverage.

Let’s discuss the best practices to prevent bike theft and your property insurance.

Do you need bike insurance?

If your bicycle is worth more than $700 to $1,000 range it could be beneficial to get additional insurance for your bicycle by way of your homeowners or renters policy.

The likes of bicycles jewelry, bicycles, firearms, and fine art are not covered due to their high worth. They are subject to liability sub-limits which means that an insurance company can limit the financial reward for expensive items.

Another option is an endorsement (sometimes known as”rider”). An insurance endorsement increases your coverage for a specific product.

If you own a costly bike, you should consider private property insurance. This requires you to appraise the bike and is the best method to protect your home thoroughly.

A standard insurance contract for bicycles will pay compensation if your bike is damaged in the case of a risk covered such as vandalism or theft.

If you plan to use your bicycle to race or participate in events, you should consider an insurance-specific business like Velosurance as well as Sundays Insurance. The standard homeowners insurance or renters insurance policy will not protect against structural damage that occurs during competitions or racing.

Does Renters Insurance Cover Bike Theft?

Does renters insurance cover theft of bike? In general, it does. Renters insurance is a cost-effective alternative that will protect your personal property and you. If you cycle only a couple of times per year or just every day you’ll be aware that renters insurance covers you.

Find affordable, easy-to-use renters insurance for a better price.

Does car insurance cover bike theft?

It’s true that an auto insurance policy won’t provide protection in the event of bike theft. You can make a claim on an unintentionally stolen bike with your condo, renters, or homeowners insurance policy.

How to file an insurance claim for bicycle theft

If your bike has been lost or damaged, take these steps to begin the process of recovering your loss. Find out more information about the process of filing an insurance claim for renters.

1. Make a police report

Give all the details regarding the theft, such as the description of the vehicle along with its location. Also, provide the date and time the theft took place. Request an official copy of the police report as well as your insurance company’s files.

2. Make sure to take pictures

This can help speed up the claim process in case parts were stolen from your bike or if the bike was vandalized. This can include stolen pedals, wheels, or even a broken or stolen lock.

3. Get in touch with your insurance company

Call the claims department at your homeowner or renters firm and start the process of filing the insurance claim. The claims rep will guide you through the process.

4. You should wait for a settlement

The wait times will vary based on the circumstances and company. The amount you receive will depend on the condition of your bicycle and policy, its value, the policy of your insurer in reimbursing personal property loss as well as your deductible. The majority of personal property will be reimbursed on the basis of actual cash value. This means that you will be paying for what your bicycle is worth today.

For instance, if you purchased the bike you have today at a cost of $900, you would not receive $900 in the event of theft. You’d get the value of the bike that is five years old, less the deductible.

This is a drawback to the cash value of reimbursement. We recommend that you insure your personal property with a replacement cost base. Replacement costs will provide you with the money needed to purchase the latest bike. Replacement cost factors into your deductible.

Does renters insurance increase after a theft claim?

Does Renters Insurance Cover Bike Theft?

A renters insurance theft claim can increase your rates by around 25%, which makes it the most costly type of claim that could influence your rate.

Renters insurance is usually inexpensive compared to other types of insurance. It costs around $20 per month. However, it’s never a bad idea to shop for a better price, especially after an unresolved claim.

We have compared renters insurance premiums from some leading companies to determine the cheapest rate, with an unintentionally stolen claim recorded on your report. Take a look at the below results.

Premiums Of Renters Insurance By Company After Theft Claim

Insurance CompanyRate After Theft Claim
American Family$360
State Farm$200

How Much Does Insurance Pay Out for Bike Theft and Damage?

Does renters insurance cover bike theft? The majority of renters insurance companies use the actual cash value when calculating the amount you will be paid. This means that the insurance company will make payments based on the current value.

If you’ve purchased Goodcover You’re covered for replacement Cost Protection, which means that we’ll give you enough money to buy the new bike when your claim has been approved.

This is an illustration: Let’s suppose your bike is stolen for $800. In the event that you’re covered by replacement costs insurance, we’ll reimburse you $800 after your claim has been accepted, so you can purchase a replacement bike that is similar in high quality.

In the event of real cash value protection, you’ll receive the price of your vehicle when it is taken. That is if your bike worth $800 was stolen but is just a few years old, the amount you receive for reimbursement will take depreciation into consideration, and you’ll only get a small fraction of what it was at the time.


Register your bike with an online database. Online databases, likeBike Indexand529 Garagekeep track of serial numbers for registered bikes. The database compares registered bikes with ones that police have located or are selling online. When your vehicle is registered you might be able to find it and then get it back if someone has taken it.

Dibyajyoti Bordoloi (CS, MBA Finance & Accounting) is the founder of He is a Practising Company Secretary and a real estate and stock market investor. He is the owner of CS Bordoloi and Associates. He is a commerce graduate from Darrang College, Tezpur, Assam. Later on, he pursued his higher studies at the Institute of Company Secretaries of India (ICSI), and completed his MBA (Finance) degree from Guwahati University. With over 16 years of experience in finance and accounting, he teaches personal finance to non-technical common people like you how to do it the right way. He is a proud member of the Chamber of Real Estate and Builders Association (North-East India). He is also a successful Investor and Trader in Equities and Real Estate.