THings such as "business equipment/tools" are not covered, or have very limited coverage, under personal property policies such as homeowner's and renter's policies. Instead, one needs a commercial property policy or possibly a floater or other endorsement on their personal property policy to extend coverage into an area normally excluded or limited.
Just as an aside . . .
A $20,000 racing bike is definitely going to get special attention when that claim comes in. In fact, a $2,000 bike is going to get some special attention, too.
Somewhere in my fraud press releases file is the tale of a fellow whose child parked his BMX bicycle behind a neighbor's RV. Inadvertently, the neighbor then proceeded to back out and crushed the bike, and is very remorseful. "We'll get you a new one. My homeowner's insurance will pay for it."
The kid's a talented BMX rider -- has a fair number of trophies, and his dad goes to the bike shop and gets an "estimate" for replacing the bike (albeit with something a bit fancier). $1400 plus tax. Then dad proceeds to change the estimate to $4400 with the stroke of a pen -- only he forgets to adjust the amount of sales tax to match his $3000 instant gain. OOPS.
Dad submits the claim to his neighbor's homeowner's insurance company with the understanding that the kid will get his $1400 bike, and dad and his neighbor will each split the extra $3000, since the insurance company "can afford it". The claims person notices the sales tax error on the estimate and calls the bike shop to inquire.
"$4500? I don't sell any bikes that expensive."
"Methinks I smell a rat," the examiner says to his SIU team, and as the result of a Dept of Insurance investigation, dad and the neighbor are eventually charged and convicted of insurance fraud and conspiracy. Little Johnny is also charged, but he's busy putting Clearasil on his pimples most of the time, and is exonerated since, at age 13 or 14, he can't even spell fraud, let alone knows what it is, and was not truly involved in the crime.
Takes all kinds.
CA-licensed Life & Disability Analyst. CA Insurance Lic #0596197. Also investigating insurance company abuses, and providing litigation support/expert witness services. Send me your questions, and I'll send you my answers.