Let me reiterate that insurance is about off-setting risk, the premium directly related to the risk of the loss and the value of the item insured. This isn’t about denying anyone a bike, but about thinking about the way you hand over money for a service that is essentially out to rip you off, i.e. small print exclusions in the event of which your policy and money you spent obtaining it is not worth the paper it’s written on.
Think about it, if you have £1000 in bikes, a standalone insurance policy will cost you about £60 annually. Whereas there is an alternative…
Most responsible adults will have more than £5000 in liquid assets, meaning they can afford to self-insure, if you do not, you are either financially irresponsible, prepared to take on debt in times of crisis (idiotic, as this costs you even more in the long run, why are we discussing saving a few quid on a premium if your losing out on the bigger picture???), or just less fortunate than others due to circumstance, in which case why are you in possession of £5000 worth of bikes? Without being judgemental, it’s time to get your priorities straight.
So for the sake of argument, lets continue. You have gone out of your way to accumulate £5000 worth of bike, therefore it would be reasonable to assume you can also accumulate £5000 in assets. At a conservative rate of return based on market investments (6% annually) earns you £250 each year. Assuming you don’t spend this (i.e. nothing happened to your bike), over a life time this makes you a return of £20,750 before compounding interest. I’m not wasting my time doing the maths on compounding interest for you, but that kind of figure means you’ll end up >£100,000 better off by simply having savings.
Now, do you pay out to insure your own bike knowing that the likelihood of theft or loss is incredibly small (hence small premiums on standalone policies) or do you self-insure and take practical measures to significantly reduce the risk of theft, loss or damage (quality lock, riding with care etc).
Now, the choice is yours, earn >£100,000 over a lifetime, or pay out to insure? Why do you think insurance companies make profit, even after their expenses (marketing, staff salaries, administration, company premises etc.). Where does this come from? Your premiums of course.
Insuring a £600 road bike on your house policy is one thing, but insuring a £6,000 road bike is another. One, it will not be covered because it will certainly be excluded due to its value. Two, if you did claim, your house insurance premiums going forward will take a MASSIVE hike, therefore you have simply borrowed from future self. Three, there’s no guarantee they will cough up in the event of a legitimate claim, as insurance companies will not freely hand over money and will attempt to wiggle out of any claim and the terms are deliberately worded to make this possible.