We do not cover:

1. Motorized bicycles, scooters or vehicles, mopeds, or any other kind of motorized conveyance;
2.  Tires unless an other part of the bicycle is first damaged by a covered peril; and
3. Contraband or property in the course of illegal transportation or trade.

Analysis

Scheduled bicycles are covered anyplace in the world as long as a respective amount of coverage and premium is shown in the schedule. The loss settlement provisions as found in the Common Policy Provisions Form PM 00 01 apply in event of a loss.

Property not covered includes motorized bicycles, scooters, vehicles, mopeds, or any other motorized conveyance. Tires are not covered unless another part of the bicycle is damaged first – damage to tires is expected for any vehicle that travels on roadways. So, if while riding the insured runs over a nail, there is no coverage for damage to the tire. Contraband or any property that is being illegally transported or traded is excluded.

C. Perils Insured Against

We insure against risk of direct physical loss to covered property.
In the event of theft of covered property, you agree to report such theft to the police as soon as possible.
We do not insure loss caused by:

1.  Or resulting from work done to or handling the property unless direct loss by fire or explosion ensues and then we will pay only for the ensuing loss;
2. Disarrangement or mechanical breakdown;
3. Corrosion or rust; or
4. Wear and tear, deterioration, inherent vice, or any quality in property that causes it to damage or destroy itself.

Analysis

The form is open perils, so only excluded perils are not covered. Bicycles are insured against direct physical loss, and in the event the property is stolen, the insured is to report the theft to the police as soon as possible. Excluded is loss from work done to or handling the property, unless direct loss by fire or explosion ensues. Then the damage from the ensuing fire or explosion would be covered.

Other excluded perils are disarrangement or mechanical breakdown, corrosion or rust, wear and tear, deterioration, inherent vice, or other qualities that would cause the property to destroy or damage itself. Such things can be expected over time – the older a bicycle is, the more it is apt to wear and sustain some sort of damage because property does not last forever. Rust and corrosion are due to age and neglect. If a bicycle is left outside in the weather, rust will appear.

D. Deductible

We will pay only that part of the total of all loss payable under this policy that exceeds the deductible amount shown in the Declarations.

E. Loss Conditions

In Common Policy Provisions Form PM 00 01, Paragraphs D.1.b. Agreed Value Loss Settlement – Scheduled Property Only and D.1.c. Unscheduled Property – Blanket Insurance are deleted.

Analysis

A deductible applies, and the loss must exceed that deductible before payment is made.

The form then modifies the loss conditions as found under the Common Policy Provisions Section D.1.b., which is Agreed Value Loss Settlement Scheduled Property Only and D 1. C. Unscheduled Property – Blanket Insurance. These two options for settlement are removed for the coverage applying to bicycles.

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