Maybe you’re in the process of moving–or perhaps you’re decluttering some of your personal property to free up some extra space.
You may need a secure place to stash your sports equipment, seasonal gear, or high-value items. Either way, a self-storage space is the answer for items you can’t keep at home for any given reason.
A storage unit is a gift that keeps on giving, offering endless new ways to prioritize and re-organize your personal belongings. Still, not all storage facilities offer the same benefits.
And unlike your private insurance agent, the storage facility clerk might not be an expert on ensuring your contract offers full coverage for those contents in storage. This leaves more than a few of us asking–does homeowners insurance cover storage units?
The short answer is it depends on your policy’s personal property limit. Some homeowners insurance policies offer coverage on personal property that extends to belongings kept in an off-site storage unit or in your vehicle.
That said, most policies have a personal property limit of some sort, meaning 100% of the damages are rarely covered.
And if you’re wondering if renter’s insurance covers storage units, the short answer is quite the same.
So, let’s take a deeper dive, shall we? First, we’ll examine how storage insurance works. Then, we’ll provide in-depth answers to both these burning questions.
We’ll also provide a few tips on how SpareFoot can help you book a storage unit that takes preventative measures to keep your valuable items safe and secure.
How Does Storage Insurance Work?
Before you take time out of your busy life to file an insurance claim to cash out on the insurance coverage for items stored in a self-storage facility, let’s examine exactly how storage insurance works.
First off, there isn’t always a separate insurance to protect contents in storage with insurance coverage. Storage insurance coverage often refers to the personal property coverage offered by your homeowners insurance or renters insurance policy.
A standard homeowners insurance policy covers vandalism, theft, and weather-related damages to your personal belongings – the same goes for your typical renters insurance policy. These coverages typically extend to any personal property you have tucked away in your storage unit.
That said, these policies have strict definitions of what damages are caused by weather. Unfortunately, mold and mildew incurred by items in storage spaces are beyond what most personal property coverages consider to be weather-related damages.
Reimbursement for damaged items in storage is subject to a coverage limit. For example, your policy might have a personal property coverage limit of $100,000 with a coverage limit of 10% or $1,000 – whichever is more – for any items in storage, in your vehicle, or “off-premise.” If a hurricane floods your storage unit, you’ll be reimbursed for $10,000 in damage since 10 grand is 10% of your personal property limit of 100K.
Pro tip: Storage insurance is different from moving insurance. Your homeowners and renters insurance policies won’t cover damage to items caused by packing, moving, or transportation accidents. One of the benefits of hiring movers is that they include a certain level of liability coverage in their hourly rate. Pro movers also offer additional coverage as an upsell.
Does Homeowners Insurance Cover Storage Units?
Putting expensive items in storage for safekeeping seems like the logical choice as far as physical protection is concerned. But financial protection is just as important for maintaining the ol’ peace of mind.
Peace is hard to come by these days, especially if the personal property coverage offered by your homeowners policy falls short of covering your costly items kept outside your home.
But luckily for you, there’s a middle path.
Your standard homeowner’s insurance policy likely includes what’s called “off-premise coverage”. Off-premise insurance coverage protects your personal property when it’s outside of your home as long as the damage falls under the categories outlined in your insurance policy.
As we mentioned earlier, homeowners insurance typically covers items damaged by theft, vandalism, and weather events. And in most policies, off-premise coverage only protects a percentage of the personal property limit offered to the belongings kept inside your home.
For example, if your personal property insurance limit covers up to $75,000 worth of losses, and your off-premise coverage covers 20% of that, your policy will reimburse up to $11,250 of losses – 20% of 75k.
But don’t get too excited – the cause of the damage is only one factor in deciding whether homeowners insurance offers storage unit coverage. Another important variable is the type of item damaged.
Many homeowners insurance policies offer limited coverage on costly items like weapons, jewelry, furs, valuable tools and machinery, antiques, collectibles, and irreplaceable items. If you have items like these in your storage unit, we suggest you add a higher-schedule personal property coverage to your policy that covers high-value items.
Does Renters Insurance Cover Storage Units?
Homeowners aren’t the only people wondering what kind of insurance they need. Renters with valuable items in an off-premise storage space might also be wondering if their renters insurance policy covers any losses or damages incurred by their personal property kept in a storage unit.
Your standard renters policy typically covers off-premise items the same way a homeowners policy does – if the items are lost or damaged via theft, vandalism, or harsh weather, they’re protected by your renters coverage.
Exactly how much is covered varies based on your policy. Again, your renters insurance policy has a personal property coverage limit just like a homeowners insurance policy does. And just like we mentioned earlier in connection to homeowner’s insurance, your policy only covers a percentage of that property limit when the property is kept in a storage unit off-site.
Just to review, if your personal property limit is $75,000, and your off-premise coverage is 10% of that, then the maximum reimbursement you’ll receive for your losses is $7,500.
Do Storage Units Have Insurance? How SpareFoot Can Help Protect Your Valuables
Another option is to inquire with the storage company about whether they offer an in-house storage insurance policy. If you know that your current possessions are worth more than 10% of your homeowner’s policy or you don’t have renter’s or home insurance, purchasing self-storage tenant insurance is probably a good call.
Most storage facilities offer insurance directly. These storage insurance policies offer basic coverage, with a typical coverage limit of $2,500-$5,000. But if the items you’re storing in your unit cost more than $5k, an external self-storage insurance policy may be the way to go.
An independent insurance provider will offer personal property coverage up to $15,000-$20,000. The monthly premiums of these policies range from an average of $20-$30.
That said, whether you’re storing fragile items or just your standard personal items, the process of filing an insurance claim and getting the damage covered is a time-consuming pain, regardless of who your policyholder is.
And even if they pay you out of the value of your damaged belongings, those irreplaceable items might be hard or even impossible to track down, regardless of how much insurance money you’re working with.
Our suggestion? Preventative maintenance. Find a storage facility that offers all the storage features you need to keep your valuables safe. A climate-controlled storage unit with 24-hour on-site security offers the best protection against extreme weather and theft.
And even if you’re covered by insurance, proving your claim can be tricky without evidence. We suggest finding a storage unit with security cameras to be sure you’ve got your proof covered.
Our simple SpareFoot Storage Unit Locator Tool can help you find a storage unit near you that boasts all the features you need. How? The SpareFoot site searches the cream of the crop in your area, tailoring the results based on the detailed search parameters you set.
You can narrow your search results down to facilities that offer climate-controlled units, on-site security guards, and cameras, all organized in order from lowest price to highest!
Michael Ta’Nous
Michael Ta’Nous is a full-time writer who works and lives with his wife in Taos, New Mexico. “Mikey” spent his early twenties living either out of a van as a touring musician or out of a backpack on motorcycle trips writing from cafes–these rigorous adventure years polished him into a master packer. In addition to managing storage units full of catering supplies and outdoor gear professionally, Michael has used storage units as a band rehearsal space and a motorcycle garage.
