How do I value my bicycle?
The Velosurance policy, issued by Markel Specialty Insurance, is known as a “stated value-replacement cost" policy. This means that the client “states” the "replacement value" to be insured and that is the amount covered, subject to the client chosen deductible, with no deduction for depreciation.
You should insure the bike for its purchase price including any cycling accessories added after purchase and any component upgrades completed after the initial purchase. You can make value changes at any time during the policy period if you add accessories or make upgrades.
In a total loss situation (think theft) the policy will reimburse up to the insured amount that can be proven through documentation (receipts). Example: A bike purchased for $3000 with $500 worth of accessories has an insurable value of $3500 and in the case of a total loss you will be reimbursed $3500 less the deductible that you chose. Receipts will be required to prove the bike’s value.
In a partial loss situation where there is damage to the bike that is less than the insured amount, the policy will reimburse the retail cost of the damage, including labor, less the chosen deductible.
We are often asked about insuring a prior year bicycle for the current year's cost and the short answer is no. The intent of the policy is to make you whole again, and in the case of a total loss, that means reimbursement for the acquisition cost of the insured bicycle, and not a new, current year bicycle.