Bicycle thefts in Canada surge during the summer, and with only 15% of stolen bikes ever recovered, insurance is often the last line of defense. But as Square One’s latest analysis shows, standard coverage may not be enough.
Data from police services in major cities shows a 138% increase in bike thefts between June and September compared to the rest of the year. While the long-term trend is down in most cities, Montreal remains an outlier, with thefts still climbing. Residential properties account for 40% of theft locations, followed by public areas at 33%. Bikes are often stolen from garages and sheds, which may not always qualify as secure storage under some policies.
Daniel Mirkovic, president and CEO of Square One, says many home insurance policies offer limited protection for bicycles.
“The standard coverage on many policies won’t be adequate, especially for high-value bikes or e-bikes,” he said. Square One said it lets customers set their own bike coverage limits, with only bikes worth more than $3,000 needing to be specifically listed.
This gap in standard protection highlights a broader issue for insurers and brokers. As more Canadians invest in high-end bicycles and e-bikes, policies need to reflect the rising value and associated risks. That includes ensuring clients are aware of sublimits, exclusions, and the need for documentation.
Personal liability coverage under a home insurance policy may also respond if a cyclist causes injury or property damage. However, many policyholders are unaware that this coverage applies outside the home. Clear communication from insurers and brokers can help avoid confusion at claim time, according to the note.
Risk prevention should also be part of the conversation. Registering bikes with recovery platforms like Project 529, using multiple lock types, and avoiding overnight public parking can help reduce both frequency and severity of claims.
For insurers, the seasonal uptick in bike thefts is a reminder to review how policies handle personal property losses tied to outdoor mobility. From underwriting to claims, there’s an opportunity to fine-tune coverage and risk guidance in line with changing consumer behavior, according to the statement.
