Core Facts about Storage Unit Insurance & 5 Tips on How to Find an Ideal Option

Although tenants usually rent self-storage units on a short-term basis (month-to-month), they need to purchase an adequate insurance policy that will protect their valuable assets from theft, vandalism, natural disasters, or any other unpredicted peril that could bring permanent consequences.

Not every self-storage company offers insurance for the contents found in their storage units, but some of them will require you to get your assets insured before you can put them inside the unit. Overall, self-storage insurance is mandatory, which is why we have prepared a comprehensive guide to all the essential facts about it.

Does Renters Insurance Cover Storage Units?

Some renters and homeowners’ policies will cover for the property that’s stored inside a storage unit, no matter if it’s found far from your home. However, not all the policies are the same.

If you see that your current renters’ insurance premium doesn’t include the stuff that’s stored in a unit, you may need to consider adding a separate policy that will cover the property you’ve put in a rented space.

No matter if it’s already included in renters coverage or not, storage insurance will protect you from the following perils:

• Fire, smoke, or lightning
• Windstorm or hail
• Explosion
• Riot
• Theft or burglary
• Aircraft

• Vehicles
• Vandalism or mischief
• Falling objects
• Snow, ice, or sleet
• Water, fire sprinklers, or household appliance that leaks water.

If the property inside your unit gets damaged or destroyed due to the mentioned perils, you can file a claim and get an appropriate reimbursement from an insurance company or agency that issued your policy.

However, you should be aware of the exclusions that exist even here. Your renters’ insurance for storage unit won’t cover for the following perils and situations, for which you’ll need to purchase separate policies or to pay by yourself:

• Flood almost always requires an additional plan that will cover the damages. Therefore, if your stuff gets affected by the excessive amount of water, you won’t be able to count on standard renters insurance.
• Expensive items you keep in a unit, including campers, watercraft, trailers, and more, won’t be insured with your policy.
• Earthquakes or other types of earth movements fall under the category of disasters that require individual insurance in order to be reimbursed.
• Governmental actions, including the damages caused by a nuclear bomb, won’t be taken into consideration when it comes to compensation.

Apart from these particular situations, your insurance carrier will probably refuse to cover for the following items, or you’ll receive only a part of the entire value:

• Art collections
• Animals
• Antiques
• Cars
• Firearms

• Furs
• Jewelry
• Important documents
• Watches

Since it’s about highly-valuable objects, you may need to purchase additional coverage that will make sure you get appropriate compensation in case of theft, vandalism, or similar peril.

Renters Insurance vs. Self Storage Insurance

Although they seem similar, renters and self-storage insurance are quite different. Renters insurance encompasses a broader range of coverages than self-storage plan does, and it applies to more situations than unit coverage.

Insurance for storage units is a policy you can purchase separately to protect your assets and it doesn’t affect your renters premium price. On the other hand, if you file a claim with your renters’ insurance, you’ll have to pay more for it.

Another critical difference between these two coverages lies in their limits. If you purchase a policy right from a storage company whose services you’re using, get prepared for fewer limits than you’d get from an insurance company or agency from which you’ve bought renters or homeowners policy.

For example, a storage facility may offer you coverage up to $5.000, while your current insurance provider may give you a $30.000 limit.

One of the greatest advantages of purchasing insurance from a storage facility is the fact that you don’t need to pay deductibles, or you don’t pay much for them. That means that you won’t have to pay anything out of your pocket until your policy kicks in, but your insurance carrier will reimburse all the costs.

Still, the lack of deductibles may lead to higher premiums you’ll need to pay.

Why Do You Need Public Storage Insurance?

We have already mentioned the importance of storage insurance, which protects your valuable assets from different kinds of perils. Another reason why you need coverage is the fact that storage facility is not responsible for the property you stored at their premises – therefore, if anything happens to your stuff while it’s there, you’ll end up paying for the damage by yourself.

Although it’s not legally required, storage insurance is highly recommended by many carriers that care about your safety. Have a look at the following reasons why you should purchase it:

Your Belongings May Have High Sentimental or Monetary Value

If you choose public storage for keeping items that mean a lot to you, you need to make sure they are covered with adequate insurance.

However, stuff that’s considered highly valuable, including fur, jewelry, or important documents, will need to be protected with special premiums that will prevent you from losing them permanently.

Adverse Weather Conditions Are Not In Your Control

Natural disasters can destroy even the most stable structures and buildings, which is why you shouldn’t leave things to chance. Hurricanes, wildfires, earthquakes, and other perils are just some of the inconveniences that could bring severe consequences to your items – even though you can’t stop them, insurance will help you recover from the damage caused by them.

Storage Facility’s Security Features Can’t Guarantee 100% Safety

Although public storage has excellent security features, including cameras, padlocks, 24/7 surveillance, etc., no one can guarantee a 100% safety from thefts and burglaries. However, thieves have less chance of breaking into the object, but it has happened several times.

Your renters’ insurance will cover for stolen items if there are visible signs of forcible entry into the securely locked unit – so, don’t forget to protect your unit with a lock or padlock; otherwise, your claim won’t be applicable.

A Storage Company Has the Right to Ask You for Insurance

Almost every storage facility has the right to ask you for coverage. You should check everything with your company and get the right information before purchasing a policy.

How Much Is Storage Insurance?

Bear in mind that not all the policies will be equally priced. The cost will depend on the type of storage insurance that you choose and the way you get the plan necessary for protecting your stuff.

Have a look at the following ways of getting storage insurance and see how they impact the price:

Getting Insurance from Storage Facility

The easiest way of getting insurance is through a company from which you’re renting a storage unit. It often provides basic coverage that excludes special damages and perils.

Such insurance doesn’t usually require you to pay any deductibles, but you can expect to pay higher premiums then. A typical policy will cover only $2.500-$5.000, which may not be convenient for someone whose household goods are highly valuable.

Getting Independent Storage Insurance

If you go for independent storage insurance, you can expect a more comprehensive coverage than the one offered by a storage facility. Consequently, the premium will be higher.

Most independent insurance carriers offer up to $15.000 of coverage for approximately $20-$25 a month. They usually protect your stuff from more perils than the insurance provided by a storage company, and they allow you to choose a smaller amount of coverage as well.

Getting Insurance from a Private Insurance Company

If you already have renters or homeowners insurance at one private insurance company or agency, you have an opportunity to add a storage plan to your current policy.

You can expect much lower rates than if you were to insure your stuff with a separate storage policy, and you may also be eligible for a multiple-line discount.

The fact that there are various ways of getting the right protection for your stuff gives you more than one choice. You can go for the option that meets your needs in terms of limits and price, which provides peace of mind knowing that your valuable assets are adequately protected.

Overall, we can say that you can insure storage unit with little money. If necessary, deductibles may range from $100 to $500 and your policy may cost from $6 to $24 a month, depending on the way you choose to get the right plan.

Despite top-notch security standards developed by storage companies, thefts, burglaries, and other kinds of vandalism may occur when you least expect them. Therefore, it’s essential to insure your goods and protect them from unpredictable perils.

5 Tips on How to Find the Best Self Storage Insurance Rates

Before completing your final move, which is buying insurance, you’re advised to go through the following steps that will help you get better rates and more protection.

1.      Choose a Proven Rental Storage Unit

Not all storage facilities offer the same conditions and security features, which is why you should wisely select the unit where you’ll keep your valuable things. Take some time to explore different premises and make sure the one you choose provides the following advantages:

• 24/7 security cameras or guards
• Fencing
• Keypad access
• Backup alarms
• Exterior lighting
• Enough rental space for all your assets
• Regular maintenance (it’s clean and well-organized)

It’s recommended to keep looking until you find a place that’s secured and provided with the latest protection from leaks, pests, humidity, insects, rodents and other types of inconveniences that may lead to potential troubles.

2.      Ask the Storage Company about Your Insurance Options

Once you’ve found the right place to store your items, it’s time to get information about insurance. First, check whether that company requires insurance or not – people often assume that the storage unit comes together with coverage, which is one of the most common misconceptions.

If insurance is mandatory, ask your storage company about the options you have and check whether they can provide coverage for your stuff, or you need to find an independent insurer that will issue the policy for you. In most cases, a storage company will recommend and connect you with an insurance carrier.

3.      Consider Adding Storage Insurance to Your Current Renters’ or Homeowners’ Policy

Most storage facilities allow you to use your renters’ or homeowners’ policy to insure your assets. To make it effective, do the following:

• Contact your insurance company/agency and check whether your current policy covers belongings stored outside the home and inside a storage facility.
• Request in-detail explanation of every part of the policy that covers stuff that’s off-premises.
• Ask whether you need a separate policy and how much it will cost you.
• Check the exclusions.

Make sure you fully understand every detail of the policy, especially the exclusions. To prevent any confusion and misunderstanding, ask all the questions you find critical and store your stuff securely and with peace of mind.

4.      Research Different Insurance Options

We have already checked the most common storage insurance options, and we have realized that each of them has certain advantageous sides. You can choose the one depending on your needs and budget, and if you’re not sure which one is right for you, consider the following factors:

• Limits are the most important part of a policy, which is why you should figure out the value of your items before selecting particular limits. The higher the value your stuff has, the higher the limits you need.
• Inventory restrictions is another crucial factor that could impact your decision. First, check with your storage company whether they accept to store all your inventory (most companies don’t accept weapons, radioactive materials, pets, etc.), and then check whether your insurance can cover some of your stuff. Namely, insurers often require an additional policy for covering money, jewelry, art, and other highly-valuable stuff.
• Policy rules are something you should be aware of. Go through every detail of the policy and determine whether you need to submit an updated inventory anytime you add or remove something from the unit and whether you need to include photos of it.
• Coverages represent something you should have in mind when researching your options. Check what perils are covered with your policy and figure out what type of items is included in your insurance.

5.      Pick the Right Carrier

The final step is picking the right carrier and submitting all the necessary paperwork and documents. Go through all the regulations again and stay up-to-date with all the changes on your premiums.