Sports are practically a national obsession in the US. A Bureau of Labor Statistics study from 2023 notes that the average consumer spending on sports equipment was $111.80 in 2021, around double of the average annual expenditure the previous year.
While most of that increase can be attributed to consumer spending during the pandemic in response to stay-at-home orders, itâs still a remarkable figure.
Some families have multiple sets of sports equipment for childrenâs athletic activities. With any adult sporting requirements or a home gym, the costs start to add upâquickly.
Like many of the things we acquire over time, the total value of sports equipment might go unnoticed until you need to make an insurance claim, only to learn that not all of your sports equipment will be covered by your homeowners insurance.
Find the right coverage
Does homeowners insurance cover sports equipment?
Yes, homeowners insurance does cover sports equipment, but similar to other items in your home, there are policy limits.
An insurance limit is the highest amount within a category of personal belongings that insurance will pay a claim onâanything above that amount will not be covered.
Most homeowners insurance policies have limits on how much can be paid out for a single item, or for a category of items. This is especially true for high-cost items that are either easily lost or a target for stealing. It can include jewelry, electronics, and sporting equipment.
Knowing what the limits are in your homeowners insurance policy is an important first step to determining whether you need additional coverage through a rider or specialized insurance policy.
What types of sports equipment might need extra coverage?
Whether or not you might want to consider purchasing additional insurance coverage for your sports equipment will hinge on a few things:
- What your policy limits are
- The type of replacement coverage you have, either actual cash value or replacement cost
- The cost of individual pieces of equipment, and
- The total cost of your sports equipment
Understanding what your policy limits are is crucial. While homeowners insurance coverage is designed to protect you from financial losses following a covered peril, most insurers limit coverage for items considered rare, collectible, or expensive.
What is considered to be âexpensiveâ? Your policy should reflect a per-item limit that is a specific dollar amount, and given the cost of sporting goods, it might seem shockingly low.
A per-item limit of $1,500 is not unusual, and for sports equipment it might even be as low as $500. However, you can easily spend anywhere from $4,000 to $6,000 on a decent mountain bike. This means that with that limit in place, if your bike is damaged, stolen, or destroyed in a covered event, youâll only receive the amount of your policy limit to go towards replacing it.
Skiing equipment, golf clubs, road bikes and mountain bikes, a treadmill or Pelotonâany of these items could very easily exceed limits imposed by your homeowners insurance for a per-item loss.
Something else to consider is that many families have multiples of these types of items. If the whole family skis, or if your family owns several sets of golf clubs, your sporting equipment will easily exceed limits set in a standard homeowners insurance policy.
Actual cash value versus replacement cost
Another important component of your homeowners insurance that could have an impact on covering your sports equipment is whether you select coverage that offers actual cash value for your items, or if you want replacement cost coverage.
Actual cash value means that if you make a claim, you will receive the value of your sporting goods at a depreciated rate. If youâve ever bought used sports equipment, you know that with new styles, technology, and models coming out every yearâand the wear and tear old equipment can be subjected toâused items have a significantly lower value.
Replacement cost is just what it sounds like. This coverage is designed to allow you to purchase the new version of your destroyed, lost, or stolen equipment.
Inventory your sports equipment
Like most personal property, whether itâs clothing or kitchenware, or tools in the garage, sports equipment tends to accumulate over time. And that means you are likely under-valuing the entirety of your collection.
Developing an inventory of the equipment you own is a good step to determine its insurance value. Make a list of what you have, listing the condition and approximate age of each item. If you kept receipts and warranties for big-ticket items, gather those as well. Now, add it all up, and consider what it would cost to replace the items you use.
If there are high-ticket items on the list (anything that exceeds your per-item policy limit is a good starting point to define âhigh-ticketâ), you should talk to your insurance agent about adding a valuable personal property rider to your homeowners insurance policy.
Other important considerations
If you regularly have possession of a large amount of sports equipment, you may need specialized sports equipment insurance.
For example, if you coach a youth league, and typically transport the entire teamâs gear in your truck or trailer, you might need special coverage. If the equipment is damaged or stolen, itâs unlikely to be covered by your homeowners insurance policy.
Coverage for this type of activity, where expensive equipment is being transported from one point to another, is specialized business insurance called Inland Marine insurance.
Do I really need sports equipment coverage?
Sports equipment has advanced considerably over the years, and with new technology and new designs comes increased cost. Bottom lineâequipment is expensive, and youâll want to protect what youâve purchased.
Sports equipment is also typically quite portable, and whether you leave your clubs at a stand outside the golf club while you go get your car or your skis outside of a restaurant, the opportunity for theft is there.
With homeowners insurance policy limits for sports equipment, itâs more likely than not that youâll be paying quite a bit out of pocket to replace these items if you donât carry additional coverage.
To learn more about sports equipment insurance coverage, contact the experts at Rate Insurance. With access to a wide range of insurers, they can help you find the right coverage to protect your sports equipment, at a price that fits your budget.
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