Cyclists warned to check their insurance this Easter

• One in eight (12%) home contents insurance policies do not cover bicycles at home (including sheds and outbuildings)
• Of those that do include cover for bikes, one in five (18%) only offer cover up to £500
• One in five policies reduce claims payments for “wear and tear” of the bicycle
• Standard home insurance does not cover bikes while away from the home, leaving cyclists vulnerable if anything happens to their bike while they are out and about
• Defaqto urges cyclists to check their cover and ensure they have the right insurance for their bike

As the Easter weekend approaches, thousands of Brits are planning to get on their bikes, if the weather allows, though many could find that they are under-insured, according to financial information business Defaqto.

New analysis of all home contents insurance policies on the market today reveals that one in eight (12%) have no cover for bikes as standard, leaving cyclists out of pocket should something happen to their bike.

While the majority of insurance policies offer some cover for cycles, Defaqto has found that the cover limits can be relatively low with one in five (18%) policies only covering up to £500. With many popular bikes selling for £1,000 or more these days, this may not be enough cover for many people.

Pedal cycle cover in the home:

Another area where cyclists can be vulnerable is with the ‘single item limit’. Home insurance policies have a limit on the amount you can claim for any one item, which is typically £1,500. This means that if you have a bike that is worth more than this, you would be under-insured in the event of a claim. Defaqto is urging cyclists to tell their insurer if they have a specialist or valuable bike as it is possible to list it separately on a policy, and usually it only costs a few more pounds to do so.

Home contents insurance is designed to cover items while they are in the home and not away from it. So if your house is flooded or burgled, your insurance policy should be able to replace the items to put you back in the position you were in before this happened. However, as bikes are ridden away from the home, they are at risk of theft or damage while out and about. Large numbers of bikes are stolen from outside stations, shops and restaurants every year, leaving cyclists at risk if they don’t have the right insurance. Only one in eight (12%) of policies include cover for possessions while away from the home as standard, but the vast majority offer it as an optional add-on, which is usually relatively inexpensive.

Defaqto analyses the whole of the market and rates products according to their benefits and features, as well as against a set of core criteria. Consumers can check the features of a home insurance policy, including bike cover, as well as its Star Ratings online at defaqto.com/homeinsurance.

Brian Brown, Head of Insight – Banking & General Insurance at Defaqto, comments:

“After the last few weeks of snow, storms and frankly, un-Spring-like weather, many will be looking forward to getting out on their bikes this Easter. Cycling has become much more popular in recent years and there are some fantastic cycles on the market to suit all tastes and budgets. If you’re a cyclist, there is nothing worse than getting a bike you love and then finding it has been damaged or stolen when you come to ride it.

“Bike insurance is a bit complicated as they can be insured on a standard home insurance policy, on a personal possessions add-on and on standalone bike insurance policies. If you have a bike you value, it is worth checking what your insurance covers and investigating adding on cover if needed. That way you can have peace of mind should the worst happen.”

Here are Defaqto’s top tips for insuring your bike:

1.       Check your insurance. Within home insurance most insurers provide some cover, but a number of them insist that you specifically insure your bikes separately.

2.       If you have particularly expensive bikes (say £1,000+) and you will be using them away from the home, you should ALWAYS check with your insurer to make sure they will be covered.

3.       If you’re taking your bikes abroad, check that your home insurer will cover them – it’s possible they will only cover unspecified personal belongings in the UK.

4. Around 1 in 5 of those insurers that do cover your bike in the home will make a deduction from any claim settlement for “wear and tear” to the bike – i.e. you will not get a new bike as a replacement, so check what your policy says.
5. If you buy a specialist pedal bike insurance policy there will certainly be a lock warranty, stipulating a minimum standard of lock that you will have to apply whenever your bike is left unattended, otherwise theft claims will not be paid.