Bike Value Evaluation for Insurance

[Mountain Bru]

I seem to have run into a predicament - I need a value evaluation for my MTB to be insured, but can only seem to get a value for the equivalent new bike. For reference, I have a Spez Epic that I built up with bits and pieces from the classifieds, but it's now 4 or 5 years old, and has many miles on it (and a few crashes). If it got stolen, I'd want to get enough paid out to replace it with a similar spec bike off the classifieds. R60k would be more than enough, and would probably even allow me  to upgrade. 

Problem is that my insurance (Naked) wants an evaluation, and my local spez dealer can only give me a price for a replacement Epic at R105000, plus a R14000 power meter. Basically, that would mean insuring my bike for more than twice it's value. If I have to do that, I'm gonna start riding in dodgey places after dark to try to donate my bike involuntarily and make a massive profit. 

Has anyone had a similar issue? Is it possible to insure a bike for "2nd hand replacement" value? 

I'm in Joburg, so if there's a LBS that anyone can recommend that can help me out, please let me know. 

Cheers

 

[Rudi Pollard]

Bicycle insurance works this way unfortunately. They only replace with new so that's why you need to insure for that value. 

[Barry]

I insured my bike with Outsurance under my household out & about. I gave them the value that I found to be the appropriate market value for the bike. When I had a claim they gave the cash to replace it second-hand or use cash as I see fit.

[wolver]

If the bike is older than 3 or 4 years you can come to an agreed value if you use Cyclesure. But until it’s that old, you have to insure for equivalent current replacement value. 

[Riccardo]

11 hours ago, Mountain Bru said:

I seem to have run into a predicament - I need a value evaluation for my MTB to be insured, but can only seem to get a value for the equivalent new bike. For reference, I have a Spez Epic that I built up with bits and pieces from the classifieds, but it's now 4 or 5 years old, and has many miles on it (and a few crashes). If it got stolen, I'd want to get enough paid out to replace it with a similar spec bike off the classifieds. R60k would be more than enough, and would probably even allow me  to upgrade. 

Problem is that my insurance (Naked) wants an evaluation, and my local spez dealer can only give me a price for a replacement Epic at R105000, plus a R14000 power meter. Basically, that would mean insuring my bike for more than twice it's value. If I have to do that, I'm gonna start riding in dodgey places after dark to try to donate my bike involuntarily and make a massive profit. 

Has anyone had a similar issue? Is it possible to insure a bike for "2nd hand replacement" value? 

I'm in Joburg, so if there's a LBS that anyone can recommend that can help me out, please let me know. 

Cheers

 

It all depends on what is in the wording.On the balance of probabilities it is new for old,unless you ask the Insurer if they can endorse the policy to note that the bicycle has been insured on an agreed 2nd hand value.If you wish to insure at new replacement cost, on a built up bike,any bike shop should be able to supply an appropriate value.Fail to understand why your LBS cannot assist in this regard.

[Mountain Bru]

On 7/13/2024 at 7:36 AM, Barry said:

I insured my bike with Outsurance under my household out & about. I gave them the value that I found to be the appropriate market value for the bike. When I had a claim they gave the cash to replace it second-hand or use cash as I see fit.

This has been my experience in the past, but now they want a proof of ownership and an evaluation. 

[Mountain Bru]

On 7/13/2024 at 10:51 AM, Riccardo said:

It all depends on what is in the wording.On the balance of probabilities it is new for old,unless you ask the Insurer if they can endorse the policy to note that the bicycle has been insured on an agreed 2nd hand value.If you wish to insure at new replacement cost, on a built up bike,any bike shop should be able to supply an appropriate value.Fail to understand why your LBS cannot assist in this regard.

Thanks. I think I need to try a few other shops rather than just the Spez guys, and maybe also try to chat with my insurer about different possibility when it comes to insured values of 2nd hand goods. 

[RobynE]

I’m sure Mellow Velo could assist you with a valuation/insurance replacement quote @Wezza 35
 

At the end of the day your valuation doesn’t need to describe what the replacement would be in terms of make and model but rather the replacement value of the bike as it stands now. They’re not like cars with official book values.
 

Bikes are the value of the sum of their parts so the valuation could say frame worth x, drivetrain worth x, wheels worth x, etc, for a total of x. 
 

And then make sure your insurance pays you out versus actually replacing your bike at a shop and paying them. I say this as when we had a home invasion our items were replaced at a store which was paid by the insurance (Outsurance at the time - since changed) so our choices were what the store had and nothing else. Now with Old Mutual you get paid the cash and you can buy what you want from wherever you want. 
 

On a personal note and as a thanks for putting in the time to do it for me, I’d buy at least some of my replacement stuff from the bike shop, just as good will. Whether a saddle to a chain or parts 🤷‍♀️ particularly if they’ve not seen my face before or I’m unlikely to use their services again beyond a valuation letter. 
 

[MongooseMan]

8 hours ago, Mountain Bru said:

This has been my experience in the past, but now they want a proof of ownership and an evaluation. 

Naked insurance?

[Mountain Bru]

5 minutes ago, MongooseMan said:

Naked insurance?

Yip

[MongooseMan]

I had the same.

sent them pics from all angles of the bike,  full inventory of all parts, and whatever receipts I had. They accepted that.

failing that, my LbS offers an “evaluation certificate “ for R150, which I was going to do if needed

[Devin Race]

Have you considered going to a broker rather than a direct insurer? 

Direct insurers (Outsurance, Naked etc.) are legally prevented from giving insurance advice. They are only able to promote their own offerings. A broker can advise you properly and make adjustments to your cover at any time. 

The common misconception is that brokers cost more than direct, but my experience has been the opposite. They know all the ways to get you the best value for money... 

[ChrisF]

19 minutes ago, Devin Race said:

Have you considered going to a broker rather than a direct insurer? 

Direct insurers (Outsurance, Naked etc.) are legally prevented from giving insurance advice. They are only able to promote their own offerings. A broker can advise you properly and make adjustments to your cover at any time. 

The common misconception is that brokers cost more than direct, but my experience has been the opposite. They know all the ways to get you the best value for money... 

 

I am also in the "use a broker" camp.

 

Insured at Santam.

 

Still need a valuation on record for my bike