Generally, storage units don’t come with insurance. However, sometimes storage unit insurance is required before a rental agreement can be signed. Signing on for any new insurance policy can be confusing or misleading at times, so it’s essential to have all your questions answered before committing one way or the other.
If the insurance coverage isn’t included but is required, how does one go about getting insurance for their storage unit rental? Does renters insurance provide coverage for storage units? What about homeowners insurance? These are just a couple of the most commonly asked questions that we will answer in this guide.
What is Storage Unit Insurance?
Storage unit insurance is intended to cover belongings inside a storage unit in the event of theft, damage or loss. Some homeowners and renters insurance policies will cover items stored off-site; if they don’t, a separate policy is necessary. Insurance for storage units isn’t as common as other forms of insurance, but most reputable storage facilities will have access to an insurance provider so the customer may purchase insurance on the spot.
Reasons for Getting Self Storage Insurance
Someone may have convinced you that storage unit insurance is unnecessary, especially if you are only storing items on a short-term basis. However, there are plenty of reasons why attaining the appropriate coverage is always your best option.
1. Your items might have high sentimental or monetary value.
If you plan on storing anything of value inside your storage unit, be sure to get adequate coverage. If something were to happen, it’s important to know that the insurance company would be able to replace that item. However, it’s important to note that just like most homeowners and renters policies, high-value possessions like furs and jewelry are typically not covered under storage insurance. These items commonly need a special form of insurance which may be purchased separately.
2. Extreme weather could put your belongings at risk.
Sometimes unforeseeable weather can cause damage to your belongings. Hurricanes, wildfires, and earthquakes are some of the major events that can wreak havoc on storage units. Again, just like homeowners and renters policies, flooding is not covered unless a special flood insurance is purchased.
3. Despite security features at storage facilities, burglary can happen.
Storage facilities have more security features than the average home or apartment. Reputable storage companies have regularly-maintained surveillance systems and access control systems that monitor the grounds and deter criminals. Though it may be more difficult for burglars to break into a storage facility, it has happened. Storage insurance covers any loss from burglary.
4. By law, a storage company is allowed to require insurance.
One of the biggest reasons people acquire storage unit insurance is because the storage facility requires them to do so. It’s the same thing when landlords require their tenants to attain renter’s insurance as a condition of renting. Contrary to our advice, many people would likely skip this crucial step if insurance wasn’t required. Ask your storage company in advance what their policy is on storage unit insurance.
How to Get Insurance for a Storage Unit
We strongly recommend acquiring storage unit insurance even if the storage facility doesn’t require it. Be a smart consumer by doing your research before you set foot inside a storage facility. Here are some steps you can take to ensure you get the most out of your new policy.
1. Look into your current homeowners or renters insurance policy.
First, ask if the storage facility is willing to accept current homeowners or renters insurance policies. If that’s acceptable, do the following:
- Call your insurance company and ask if your policy would cover your belongings if you stored them outside the home and inside a storage unit.
- Ask to be directed to that part of your policy and read it in detail.
- Find out if you need to take out a separate rider and what that will cost you per month.
- See if there are any items the current policy won’t cover, like cash or jewelry.
- Ask the storage company what proof of insurance they need. Many (including us at Life Storage) will require a copy of the Declaration Page, which is a standardized outline of coverage that specifies whether or not coverage extends off-site.
2. See if any insurance companies work directly with the storage company.
You might pay a little bit more going through your storage company for insurance, but claims are generally more straightforward to process because the insurance company works closely with the storage company. Don’t make the mistake of thinking that the storage company is providing you with insurance. This common misconception is not the case. More often than not, the storage company acts as the go-between, connecting you with a completely independent company.
3. Research different policy options.
You have three options when it comes to storage unit insurance: use an existing policy, get a policy through an affiliated insurance company at the storage facility, or search for a third party company. To help you decide, research the offerings of each option. Some things to look into include:
- Coverage limit — Is there a max coverage limit? Figure out the value of your storage items then decide which policy will provide the most coverage based on your needs.
- Inventory restrictions — Find out if there is anything that the policy will not cover, like cash or jewelry. Do an inventory of everything you will be storing and make sure you are covered. If any item has a high value, find out if you need an appraisal with it.
- Policy rules — Are there any rules you need to be aware of? For instance, do you need to submit an updated inventory anytime you change out storage items? Do you need to include photos?
- What’s covered — Find out which natural disasters the policy covers. For instance, if the storage unit is located in a flood zone, but floods are not covered, consider picking a different policy.
4. Pick a company and stay up-to-date with premiums.
The next step is to pick a company, submit all the necessary proof and paperwork, and then stay updated with your premiums. Ask your storage facility if there are any repercussions if you default on your insurance policy.
Self Storage Insurance Rates
The cost of storage unit insurance will vary depending on the value of what you’re storing, your location and several other factors. In general, insurance for storage units is relatively inexpensive. Most policies are structured with a premium that you can pay monthly with your rental payment. Most policies start at $10 per month for $2,000 worth of coverage. However, higher coverage amounts aren’t that much more expensive. $20,000 worth of coverage might only cost $20/mo.
If your policy has more coverage options, like liability insurance or flood insurance, the policy could cost more. Remember, you might save money by combining your policy with a homeowners or renters policy. Make sure you read your terms thoroughly, so you understand what everything costs.
We hope you have a better sense of why storage unit insurance in beneficial and how you can go about getting the most comprehensive coverage possible. If you have any questions about our insurance requirements at Life Storage, feel free to reach out to us directly.