Choosing the right storage unit insurance can be a perplexing and uncertain journey. You’re probably wrestling with questions such as:
What does storage insurance actually protect against? Does it cover all types of damage or only certain incidents?
Is it mandatory when renting a storage unit, or purely optional?
Does my current homeowner’s or renter’s insurance policy already offer coverage in the face of storage-related incidents?
We understand the confusion and the need for clarity, so we’ll explore the intricate world of storage insurance and address various concerns about the process.
How Does Storage Insurance Work?
First, the obvious: A storage insurance policy is designed to provide coverage for the belongings you store in a storage unit.
But you’ll want to ask: Exactly what does storage unit insurance cover? Pay attention to the fine print so you know what issues are covered, such as:
- Theft
- Fire
- Vandalism
Policies may be less likely to cover personal property damaged by:
- Natural disasters
- Water damage
- Mold and mildew
- Pest infestations
- Structural damage to the storage facility that damages your personal property
Certain storage facilities may make storage insurance a mandatory requirement for renting a unit, whether that insurance comes in the form of a homeowners’ or renters’ insurance policy that covers items stored off-premises OR a separate storage unit insurance policy (offered through a third-party or the storage facility itself).
If an unfortunate event occurs, and your stored items are damaged or stolen, you can file a claim with your storage insurance provider.
These facilities may even offer storage unit insurance that covers issues not typically covered by a home or renter’s insurance policy (such as mold and fungus damage)
However, you will want to be aware of any policy limitations, such as coverage limits, deductibles, and exclusions, so carefully review the terms and conditions to ensure you have the right level of coverage for your belongings.
In addition, it’s always wise to keep records of your stored belongings, including photographs, receipts, and item descriptions. This documentation can be valuable when filing a claim and proving value when you store high-value items.
How Much Does Storage Unit Insurance Cost?
The cost to buy storage unit insurance will be dependent on how large your storage unit is and the value of the personal property you’re storing (Once again, there may be a coverage limit imposed, so avoid storing big-ticket or potentially priceless items).
In general, self storage unit insurance is less expensive than other types of property insurance, coming in anywhere from under $10/month for $2000 worth of coverage to as much as $65/month for up to $25,000 of coverage. Cheaper plans are more likely to have a higher deductible.
Of course, you may need additional coverage, especially if you’re storing luxury items such as wine collections, artwork, or cars. Those policies can cost up to hundreds of dollars per month in addition to your rental fee.
But there’s good news. If you have your own renters or homebuyers insurance, you may be able to use it to offset any losses that self-storage insurance doesn’t cover.
Use this helpful guide for choosing a storage unit type that fits your needs before determining the level of insurance coverage you’ll need.
What Other Types of Insurance Cover a Storage Unit?
Homeowners Insurance or Renters Insurance
Your homeowner’s insurance policy or renters insurance may extend coverage to items in a self storage facility. So, if you have one of these policies, insurance may cover a percentage of the cost of replacement, even though the items were not in your residence at the time of the incident.
However, property stolen or damaged in your storage unit typically won’t be eligible for the same amount of coverage as they would if they were stored in your home.
It’s crucial to double-check your policy before relying on it, noting:
- Whether your policy has a section on “off-premises coverage” or “away from home coverage” at all.
- Any coverage limits (and whether they are sufficient to cover the full value of your items or merely a small percentage).
- Exclusions and limitations that may leave high-value items unprotected.
- Deductibles that, if high, may require you to pay thousands out of pocket before coverage kicks in.
Auto Insurance Policy Coverage
It’s rare to find vehicle storage insurance outside of specialized auto storage facilities. Comprehensive coverage is one option to consider for cars in storage, though you’ll need to do your research on what each policy covers and how many days a car needs to be in storage before the coverage kicks in.
Boat Insurance Policy Coverage
An existing homeowners insurance policy might extend coverage to your boat, but that may cover only a small percentage of the boat’s value and may not apply to boats stored off-premises. However, it’s best to check with your boat storage company to see if they offer specialized coverage.
What Is Covered Under Storage Insurance?
With any of your existing policies, always assess what types of damages or losses are covered. For example, some insurance policies may not cover flood or water damage. Others may not cover specific types of natural disasters.
Here are some specific coverage details to look for:
Water or smoke damage
Damages caused by water or smoke are most commonly excluded from storage unit insurance coverage, depending on the policy you have. For example, renters insurance often covers fire damage but not water damage. Coverage may also depend on where the water comes from (a flooded body of water vs. a pipe burst in the facility).
Natural disasters
Many storage insurance policies (whether offered through renters, homeowners, or a third party) cover some damages caused by natural disasters. However, if you’re using your homeowners insurance or renters insurance to cover your storage unit contents, the off-premises coverage will typically cover fire, tornadoes, and lighting–but may not include floods or earthquakes.
Be sure to verify whether or not your current coverage policy covers the types of natural disasters that are most prone to occur in your area.
Pests or mold
In most cases, storage unit policies don’t cover instances of damage caused by mold, mildew, or pests. Read over your policy thoroughly before you sign on or ask your storage unit provider what their policies are in addressing mold prevention and pest control.
Lost or stolen items
It’s unlikely that a storage insurance policy provided by the facility will cover theft — especially if the storage facility has security cameras and features in place, making the facility less likely to be found liable for recovering those damages.
In this case, homeowners or renters insurance can be your best protection in the case of lost or stolen property from your storage unit, but that will solely depend on what your policy provides for “off-premises” protection.
Highly valuable items
For valuables such as art, wine, jewelry, furs, collectibles, and such, any storage insurance policy will likely only cover damages up to a certain limit. Double-check to see what this threshold is and where it currently stands in your existing policy, then consider adding a floater to expand your coverage so these items are protected from any damages in full.
Final Thoughts
Neighbor offers comprehensive storage protection with a $25,000 Renter Guarantee at no additional cost. We not only help you find the perfect storage units to meet your needs, location, and budget but also ensure the safety of your stored possessions.
With Neighbor, you can have peace of mind without the hassle typically involved with other insurance providers.
Browse All Our Helpful Storage Guides:
- Storage Unit Size Guide
- Average Monthly Storage Unit Costs
- Types of Storage Units
- Storage Unit Insurance Guide
- How to Calculate Square Footage
FAQ
Do Storage Locations Require Insurance?
Yes, most self storage units require some type of insurance to protect your property. They may offer their own insurance or allow you to rely on your renters or homeowners insurance.
