There are multiple variations of these two examples, the ramifications being complicated. One alternative may be considered: insure your fine bicycle like you would if you had expensive jewelry, specifically by scheduling it on your homeowners’ policy. To get replacement cost coverage, you would need the agreed value endorsement. Not all insurers will accept this because it adds coverage for mysterious disappearance, or damage to the bicycle from a crash or fall.
Article taken from Standard Answers Magazine written by Scott W. Foster
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The Ignasecond
and
the Oops Moment
Is there coverage for my bicycle on my car?
Ignasecond: Defined as the moment you realize the accident will occur, but there is too little time to stop! It is also the moment you shut the car door knowing as you do it, that the keys are in the ignition.
You are back from vacation, garage door is opening, the kids and dog are bouncing against the car doors. With relief, you drive those final 20 feet to park your vehicle. Whoa…roof rack collides with the garage door header ripping the roof rack off of your car. Four expensive bicycles are mangled, resulting in a damaged house, car, bicycles and a roof rack.
Can this mess be covered by your insurance?
1. Your Automobile policy covers damage to the car after your deductible.
2. Your Homeowners policy covers damage to the garage. Bicycles and roof rack are personal property and would also be covered under your homeowners’ policy. Better yet is a homeowner’s policy with replacement cost coverage for personal property.
This accident should only have the deductible applied once. Not to get too specific, but the covered cause of loss or peril to the home and the personal property is a “vehicle” (completely undefined in the standard policy).
Oops Moment: You never thought it could happen, but it did!
Your son, driving west to college, has two beautiful bicycles attached to the bike rack at the rear of his car. Hitting a bump outside of Metropolitan Chicago, both bikes fall off and into traffic. The snarling mess causes a multi-car accident.
Your son, being a full time student under the age of 24 and living away from home, is technically a household resident, thus having his belongings covered under the parents’ homeowner’s policy. The scenario in “Ignasecond” applies here as well. Hopefully, you have purchased sufficient auto limits for your son to pay for the other drivers’ problems.