Again this depends on the coverage you have. The norm for many policies is to pay actual cash value for personal property - thats what the item is actually worth given its present age. For example: A ten year old bicycle would be valued at the cost of a new bicycle minus ten years' depreciation.

However if your basic bicycle insurance was a replacement cost coverage, then the bicycle would be replaced without any depreciation with your the bicycle being replaced would be for one at current market value meaning that that that same ten year old bicycle would be valued at the cost of a new bicycle of similar quality.

Of course there is always a catch as the insurance generally does not pay the full value of the loss. Your bicycle insurance policy may typically have a deductible, maybe $100, maybe $1000, depending on what you could afford or chose when you bought the policy.

Before you do have a theft loss, its a good idea to take a photo inventory of your bicycle, and keep receipts of the original purchase, whether your two-wheeled pedal powered transport costs a few hundred or more than a thousand which could be the case nowadays with the many types of hi-tech bikes in the marketplace. This will undoubtedly help in speeding up your claim especially if the bicycle is over a thousand, and will solidify report of theft to the police where you can present the records you kept at the time of purchase.

One last bit of advice, before reporting a theft claim, its beneficial to compare the amount you expect to recover to the possible costs of the claim, such as a claims surcharge on your insurance premiums for the next several years, and the possibility that you will not qualify for standard homeowners coverage. Of course policies vary dramatically by company so always ask your local insurance agent for advice.

How can I insure myself while bicycling? We'll cover that in another article at basic-bicycles.topic.ca.