Do You Need Storage Unit Insurance in 2024?
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Homeowners and renters who want peace of mind while they store their items in storage units can invest in storage unit insurance. This type of insurance covers items that are stolen or damaged, and many storage companies offer it. Read our guide below to learn how you can get storage unit insurance, how much it’ll cost, and whether it’s worth the investment.
What Is Storage Unit Insurance?
Storage unit insurance is a specialized form of coverage that protects your belongings while they’re in a self-storage facility. This insurance can be an extension of your existing homeowners or renters policy, or a separate policy that a storage company or third party can issue.
Storage facilities take measures to secure their premises, but unexpected events such as fire, theft, or natural disasters can still occur. Storage unit insurance provides financial protection against these risks so that you can repair or replace your items.
Does Homeowners Insurance Cover Belongings in Storage Units?
Standard homeowners insurance covers items you keep in a storage unit, according to the Insurance Information Institute. Personal belongings coverage applies even if you store your belongings somewhere other than your dwelling.
There are some limits you should be aware of, though. Insurance usually covers personal belongings at a rate of 50–70% of the insurance on your home’s structure. Some insurance companies limit off-premises personal belongings coverage to 10% of your dwelling coverage, even after you meet your deductible. If your policy covers $100,000 in personal property, you may only have $10,000 in coverage for items in storage, for example. You may be able to increase this for an additional fee.
There may also be limits in the case of theft. Your insurance may only reimburse you $2,000 for stolen high-value items, such as jewelry, firearms, electronics, or collectibles, regardless of how much they’re worth. An insurance company may limit coverage of these items to $2,500–$3,000 even in the case of a natural disaster. You can raise this coverage limit by purchasing scheduled personal property coverage, which also applies to items in storage.
Does Renters Insurance Cover Belongings in Storage Units?
Renters insurance covers personal belongings even if you keep them in storage units, but coverage limits apply. Look at your Coverage C limits for more information.
For most, renters insurance covers $10,000–$50,000 for belongings, but off-premises items are subject to the 10% limit. That means if you’ve insured your rental dwelling for $25,000, your renters insurance will only cover your stored items for up to $2,500.
There may also be sub-limits for certain valuable items, such as furs, gems, silverware, gold, or business property. You can cover individual items by adding an insurance rider to your policy.
Do I Need To Get Storage Unit Insurance?
Many storage companies require you to provide proof of insurance before they allow you to rent you a unit. Both home and renters qualify, but the coverage limits are often so low that it makes sense to purchase additional coverage. You can do this by adding riders to your existing policies with your current insurance company. Consider adding coverage for typical exclusions, such as damage from flooding and earthquakes.
Many companies offer some insurance based on the size of the storage unit and additional coverage for an extra fee. Some storage companies will even offer coverage mold, mildew, and flooding, which renters and homeowners insurance typically exclude.
One benefit of storage company insurance is that claims won’t count against your other insurance policies, so your home insurance premium won’t go up if you file a claim on stored items with a separate policy.
How Much Does Storage Unit Insurance Cost?
The cost of self-storage insurance depends on your current policy, your insurance provider, and where you live. Adding personal property coverage to an existing policy will add about $100 per year to your premium for every additional $10,000 in coverage. You can also choose to go through your storage facility or a third-party insurer, though.
Self-Storage Facility Insurance Options
Insurance requirements and costs vary by storage company. Below are some popular nationwide companies and their rates:
- Extra Space Storage offers $2,000–$10,000 of insurance coverage on your belongings for a monthly fee of $11–$52.
- U-Haul’s Safestor insurance plans start at $8.95 per month for $1,000 of coverage and increase from there.
- Public Storage partners with Orange Door to offer a single $15-per-month plan with a $100 deductible.
Third-Party Storage Insurance Providers
Independent insurance companies also offer storage-specific policies. These may provide more comprehensive coverage or higher limits than facility-provided options. SnapnSure offers plans that range from $7.99–$65.99 a month, for example, which offers $2,000–$25,000 worth of coverage.
Cost Factors
The cost of your storage insurance depends on the amount of coverage you seek. Higher coverage limits will increase your premium, while choosing a higher deductible can lower your monthly costs. Consider the value of your stored items and your ability to pay out-of-pocket in case of a claim when selecting these options.
The location of your storage unit and the facility’s security can also affect your insurance rates. Units in areas that are prone to natural disasters or high crime rates may have higher premiums, while facilities that have advanced security systems might qualify for discounts.
What Does Storage Unit Insurance Typically Cover?
If you choose not to purchase additional storage unit insurance, your coverage will depend on the types of damage your home or renters insurance policy covers.
What’s Covered
The catastrophic events your policy covers are called “covered perils,” and most home and renters insurance covers those below.
- Burst steam or water pipes
- Damage from vehicles and aircraft
- Falling objects
- Fire and smoke
- Fire sprinkler system water damage
- Lightning strike
- Theft and vandalism
- Weight of ice, snow, and sleet
- Windstorms and hail
What’s Not Covered
Renters and homeowners insurance does not typically cover the perils below, on the other hand:
- Damage from lack of maintenance, such as wear and tear, mold, mildew, and vermin
- Flooding and water damage
- Government action to confiscate or condemn a building
- Ground movement such as earthquakes, landslides, and sinkholes
- Infestations of bedbugs, termites, mice, and other vermin
- Nuclear hazards
- Sewer backups
Some storage companies offer additional coverage for these excluded events.
How Should I Document My Storage Unit Contents?
You should have an inventory of your stored belongings no matter what kind of insurance you purchase. This will help you determine how much insurance to buy, make filing a claim much easier, and allow you to quantify losses in case of an unexpected event.
Follow the tips below to make an inventory of stored items:
- Document basic information about each item, such as its make and model, where you bought it, and how much you paid.
- Keep counts of bulk items such as clothing.
- Keep proof of value for big-ticket items. Proof includes receipts, purchase contracts, and appraisals.
- Take photos of the serial numbers of all of your electronics and appliances.
How Do I File a Claim on Storage Unit Insurance?
Follow the steps below in case you need to file a claim for missing or damaged items:
Steps To Take After a Loss
- Document the damage or loss immediately with photos and videos.
- Contact your insurance provider as soon as possible to report the incident.
- File a police report if there’s been theft or vandalism.
- Avoid disposing of damaged items until the insurance adjuster has assessed them.
Required Documentation
Be prepared to provide the following:
- Any police reports related to the incident
- Photos and videos of damaged or missing items
- Receipts or appraisals for high-value possessions
- Your detailed inventory list
What Happens if I Don’t Have Insurance?
A storage company might refuse to rent you a unit if you can’t provide proof of existing insurance coverage. If the company rents you a unit without insurance, all your stored items are at the mercy of hazards such as fire, weather, water, and theft. If your property is damaged or destroyed, you won’t have any options for reimbursement.
FAQ About Storage Unit Insurance
Do storage units require insurance?
Most storage companies require proof of insurance. Many companies offer coverage for an additional fee if you don’t have your own.
Is Safestor Insurance legit?
Safestor Insurance is a legitimate company. It’s one of the largest storage unit insurance companies, and it’s owned by Ponderosa Insurance Agency, which has been in business since 1973.
How does personal item insurance work?
Personal item insurance, which is also called personal property coverage, is the portion of your homeowners or renters insurance policy that applies to your belongings, not your dwelling, itself. If your belongings are damaged by a covered peril, the insurance company will reimburse you for them, though at a substantially lower dollar cap than a full insurance policy might have.
Does storage insurance cover water damage?
Standard insurance policies typically only cover water damage that results from fire sprinklers. Specific storage insurance policies are more likely to cover water damage from flooding, rain, or other sources.
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