If you are keeping your belongings in a storage unit, you’ll want to make sure they’re safe. There are many ways to protect your personal property in the storage unit. Storage unit insurance provides coverage for possessions in a storage unit.
This article takes you through Storage Unit Insurance, why it is essential, and how you can get the coverage.
What Is Storage Unit Insurance?
Storage unit insurance is also sometimes referred to as self-storage insurance.
It is a policy that provides personal property coverage for your possessions contained in a rental storage facility.
Should a covered peril damage any of the possessions kept in your storage unit, you can claim a payout for the damaged items from your self-storage insurance.
Why Do You Need Storage Unit Insurance?
Most rental storage unit companies try to get you to purchase storage unit insurance, if not outright require it for your possession stored on their premises. Usually, this means coverage for anything you are keeping in the storage unit – for instance:
- Clothing.
- Furniture.
- Collectibles.
Rental storage companies have their insurance. However, this only covers their liability and not the belongings of their tenant. This means that the rental storage company is protected if it is negligent with your belongings.
However, you should be aware of other risks, such as:
- Fire.
- Floods.
- Vandalism.
- Earthquake.
- Subsidence.
- Storm.
- Sprinkler damage.
This is where your storage unit insurance comes in.
A good storage unit insurance policy should protect you against all named perils.
Furthermore, the insurance company may have some rules regarding how you use your storage unit. For instance, the insurer might require you to secure your storage tightly – using a padlock – or keep your belongings in waterproof containers. You will need to follow these rules because your insurance coverage may be invalidated if you do not.
Disregarding such a policy may give your insurer a reason to invalidate a claim payout.
What If Your Property Is Already Insured?
Your renters, homeowners, or business insurance policy may already cover your reason for renting a storage unit in the first place. For instance, if you are displaced by a covered peril such as a tornado, fire, or other natural events. In such a circumstance, you might already have coverage, provided that the items are listed on your policy.
Check your renters, homeowners, or business policy document to make sure it provides coverage for the storage unit.
Usually, most renters or homeowner’s insurance policies will protect your storage unit belongings up to 10% of your policy coverage limits. For instance, if your renters insurance limit is $10,000, then your belonging in storage will be covered up to $1,000.
However, your renters or homeowners policy can cover the entire value of your possessions if your house or home is unfit to store the items. This may be possible while you repair or renovate your home.
Pro tip: Storage unit insurance bought directly through the storage company often covers less than the storage insurance, which comes with renters or homeowners insurance through your provider.
What Does Storage Unit Insurance Cover?
Packages for storage unit insurance policies may differ by the insurer, but they may have similarities in the damages covered. For damage to be covered, it has to be among the named perils.
The main damages covered include:
- Wind.
- Fire.
- Vandalism or Theft.
- Hurricane.
- Storms (hail storms).
- Tornado.
- Water damage.
- Lightning.
- Smoke.
Exclusions Of Storage Unit Insurance
It is important to know that your insurer may specify some perils that are not covered by the storage unit insurance policy. These are called exclusions. The common storage unit exclusions include:
- War.
- Flooding.
- Mold and mildew.
What Items In A Storage Unit Do Not Have Guarantee Of Coverage
Some items, because of their high value and associated risk, fall into a gray insurance coverage area. As a result, your policy could have limits on coverage amounts for some items or exclude them from the coverage.
Examples of these items include:
- Antiques.
- Furs.
- Firearms.
- Jewelry and Watches.
- Art collections.
- Important documents.
- Automobiles.
Pro tip: if you are using your renters or homeowners insurance for a rented storage unit, your provider may offer a rider 9policy to cover an item that is excluded or with limited coverage in standard storage unit insurance. The rider will allow you to cover the item for its full value. However, this may require an appraisal before the rider is included in the policy.
What If The Storage Unit Offers Insurance?
Storage unit companies often require proof of insurance before letting you rent a unit.
However, sometimes less scrupulous operators may neglect this bit of information until the day you move in, then immediately demand the proof of insurance before handing over the keys to you.
As a renter, you will then be forced to purchase a policy from the storage unit company.
To prevent feeling forced or rushed, have your proof of insurance ready before moving into the storage facility. Many storage unit insurance policies reimburse only for an item’s cash value at the time of damage or loss, which is often less than replacement cost.
It is not recommended to settle for the facility’s policy, because it can be expensive while offering less coverage.
How Can You Find the Best Storage Unit Insurance?
When you decide to rent a storage unit for whatever reason, you will want to make sure your belongings are safe.
Also, you want to make sure the insurance program or policy you choose is the best the market has to offer.
You can purchase storage unit insurance in two ways:
- Through the storage company.
- Through an independent insurance company.
Almost always, insurance purchased through a provider offers greater coverage than when you are buying insurance from the storage facility. Due diligence is a good way to start. You need to compare quotes before you decide on which type of coverage you want to buy.
You can also consult with an independent insurance agent to obtain more information. Insurance agents always have useful information regarding insurance companies and can advise you on a list of storage unit insurance providers offering reasonable rates with good terms.
Finally
When renting a storage unit or planning on renting one, you need to protect your belongings and ensure their safety is assured. Insurance is the only way of guaranteeing such safety.
Sometimes purchasing a storage unit insurance can be challenging. You may involve an insurance agent to advise you accordingly and ensure you get the best deal and value for your money.
Whether you use your renters or storage unit insurance, ensure the policy covers your belongings from damage and theft, even if the storage unit company does not require insurance coverage.
Should your items be destroyed or damaged by a covered peril, you will not worry about having to replace it out-of-pocket.