Almost 1 million bicycles were stolen in the U.S in 2006, according to the FBI and most of them were never seen again. With the increasing popularity of bicycling as a sport and as a means of transportation, bike thefts are on the rise.

“A good bike can cost several thousand dollars,” said Jeanne Salvatore, senior vice president and consumer spokesperson at the I.I.I. “To protect it, always lock your bike, and make sure you have adequate insurance coverage.”

Bicycles are stolen most often in densely populated areas such as cities and suburbs, but university and college towns are another hot spot; in fact bicycle thefts represent over half the property crimes on campus.

Bicycles are covered under the personal property section of standard homeowners and renters insurance. This coverage will reimburse you, minus your deductible, if your bike is stolen or damaged in a fire, hurricane or other disaster listed in your policy.

There are two types of coverage for personal property.

* Actual Cash Value
Actual cash value is what the bicycle is actually worth given its age. A ten year old bicycle, for example, would be valued at the cost of a new bicycle minus ten years depreciation.

* Replacement Cost Coverage
Replacement cost coverage will reimburse you for what it would cost to replace your ten year old bicycle with one of like kind and quality at today’s cost. Replacement cost coverage costs about 10 percent more than actual cash value, but it is a good investment.

Homeowners and renters insurance also provide liability protection for harm you cause to someone else or to their property. Therefore, if you injure someone in a bicycle accident, and they decide to sue, you will be covered up to the limits of your policy. This protection also includes no-fault medical coverage; in the event you injure someone, he or she can simply submit medical bills to your insurance company so that medical bills can be paid without the injured person having to sue you. This coverage usually ranges from $1,000 to $5,000. To make filing a claim easier, the I.I.I. suggests the following:

Save your receipts
When you buy your bicycle you will probably purchase expensive equipment to go with it. Be sure to save all your receipts. The cost of a helmet, patch kits, pumps, extra inner tubes and other essentials can add up quickly. If your bike is damaged or stolen, having receipts can help speed the claims process.

Add your bicycle to your home inventory
Everyone should have an up-to-date home inventory of their personal possessions. This can help you purchase the correct amount of insurance and will make the claims filing process easier if there is a loss. To help you create a home inventory, the I.I.I. provides free, downloadable software located at www.KnowYourStuff.org. As well as listing all your possessions, the software allows you to add digital photographs of your valuables and save scanned receipts.

To protect yourself and your bicycle while cycling, follow some simple rules:

* Always wear a helmet; the most serious bike injuries are to the head.
* Wear reflective clothing so motorists can see you clearly.
* Properly maintain your bicycle; repair tires, gears and brakes as they age.
* Obey the rules of the road. Follow the same rules that apply to cars and other vehicles such as stopping at stop signs and yielding to pedestrians.
* Ride in the same direction as cars, never against traffic.
* Ride well to the left of parked cars. This will help you avoid being “doored” when a motorist unexpectedly opens the driver’s side door as you ride by.

To learn more about bicycle safety visit Advocates for Auto and Highway Safety.

By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.

There are two types of renters insurance policies you may purchase:

With either policy, you may want to consider purchasing a floater. A standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.

Thanks to: III.org