What is storage unit insurance, and do you really need it?
Navigating storage insurance is worth the fuss if you care for your valuables. Here are all the factors to consider when making your decision.
Whether you use your renters insurance or a package purchased from the storage unit company, most facilities require you to have an insurance policy before you can store your items there. Understanding your policy, and what it will and won’t cover, will help you avoid potential surprises.
Recommended reading from Yahoo: Everything you need to know about moving insurance
How does storage insurance work, and what does it cover?
Storage unit insurance, sometimes known as storage unit tenants insurance, ensures your valuables are covered in the event of damage or loss to your personal property. This could include:
Break-ins, vandalism and theft
Fire and flooding
Natural disasters
Damage from mold or pests
Should any of these unfortunate incidents occur and your belongings are damaged, you can file a claim with the insurance provider for compensation.
However, it's crucial to thoroughly understand the details of your insurance policy, whether purchased from a home insurance company or the storage unit facility itself. Policies can vary in terms of coverage limits, deductibles, exclusions, and, in the case of homeowners or renters insurance policies, reimbursement for items stored off-premises. This knowledge will empower you to make the best decision for your storage needs.
Do you really need storage unit insurance?
The Insurance Information Institute (I.I.I.), an industry association, strongly advocates for storage renters insurance.
“If an item is valuable enough that you are willing to pay for storing it, the item should be financially protected with the proper amount and type of insurance,” said Loretta Worters, vice president for the I.I.I. “Even in the best-managed storage facilities, theft, fire, and other disasters can and do occur. That’s why before signing a rental agreement, it is important to find out what types of losses will be covered by the storage facility and whether supplemental insurance may be needed.”
Most storage facilities require that you maintain insurance, either with them or your renters insurance, so you may not have a choice. However, it’s important to remember that your stored items can have value limits in addition to various coverage limits.
Does homeowners or renters insurance cover storage units?
While these standard policies can include off-premises coverage for your belongings stored safely, many do not include flooding, mold, or mildew protections. Additionally, some policies limit storage unit coverage to just 10% of the overall value of your whole insurance policy. An additional policy, supplement, or coverage purchased directly from the storage facility may be the best route for large storage units or valuable belongings.
When considering the pros and cons between your existing policy and storage facility options, the I.I.I. advises that “your home or renter's policy will be more comprehensive than storage facility insurance and is regulated by your state insurance department.” Ultimately, the best insurance policy will depend on the size of your storage unit, the length of time you will use it, and the type and value of the items being stored there.
The bottom line: Evaluate your homeowners or renters insurance carefully so you understand any coverage that may apply.
Will storage unit insurance cover all my valuables?
Storage facilities and insurance policies can have value restrictions. Attempting to store, for example, valuable art, jewelry, or collectibles may result in a loss if you’re put in a position to claim on your insurance policy.
According to the I.I.I., the standard property value for most storage facilities is $20,000. If you believe the contents of your property may exceed that, you won’t be able to make a claim for the additional value on your insurance if anything happens to them.
The I.I.I. recommends that items such as antiques, furs, or vintage comics be stored in specialized storage facilities that control temperature and humidity or bank safe deposit boxes. These facilities are safer, and insurance policy costs can also be cheaper.
What do you need before getting storage unit renters insurance?
Once you have decided on a policy and storage facility, it’s imperative that you catalog all items you decide to store. Having a complete record of your property, its value, and evidence it was in storage will ensure any claims you make in the future go as smoothly as possible.
How should you catalog your belongs in storage? These simple steps can help create a full catalog to store alongside your renters' insurance policy documents:
Keep track of each item in a notebook or a spreadsheet
Go through each box and item recording the following information:
Item name, including brand and model number if there is one
Date stored
Box name or number it was stored in
Item value
Take multiple pictures of each item and the box in which it is stored, and ensure you can see all angles
If possible, photograph or make a copy of the receipt so you have evidence of the item’s value
Store your notebook or spreadsheet, and a backup, somewhere safe
If you ever need to file a claim, this information will ensure your storage unit renters’ insurance policy will be able to reimburse you quickly and easily.
More moving articles from Yahoo Local
