5. The low down on insurance

We understand that Bicycle Victoria members love their bikes. After all, it’s your transport, recreation and fitness. It’s probably one of the most important things you own. Your bike is also a big financial investment, so it makes sense to protect it.

Home insurance basics

There are three main components of home insurance:

• Building Insurance

This usually covers the main dwelling and generally the garage, sheds, fences, gates and other fixtures and fittings.

• Contents Insurance

This usually covers the cost of replacing personal possessions and furniture. A contents policy might be a new-for-old replacement  or a current value indemnity policy. Under contents insurance, valuable items like jewellery or artworks might need to be individually listed. Some policies provide cover for items away from home, but some don’t. This is an important consideration when choosing contents insurance that will cover your bike.

• Personal Liability

This protects you for your legal liability, in case people are injured in your home or you cause damage to someone else’s property. The cover applies both to Building and Contents insurance. Under the contents insurance policy the cover usually applies at and away from your home. Some Insurers even provide cover anywhere in the world, for example, if a visitor at your home falls down the stairs, or if you cause injury or damage to property when riding your bicycle. This cover doesn’t apply to people who work in your home, like cleaners or gardeners. This is dealt with under Workcover legislation.

 

Learn more about Facts and Figures

Case Study 1

Jess’s bike is her main form of transport and she lives in a flat. She rides it to work, to Uni, to the shops and to visit her parents on weekends. That was, until her bike was stolen out of her parents’ locked garage.

‘I’d never thought to insure my bike,’ Jess said. ‘I just assumed it would be covered with my contents policy.’ Jess learned the hard way that this wasn’t the case. ‘My bike cost me more than $1200. I can’t afford to replace it, but I can’t get to work without it.’