Do You Need Storage Unit Insurance?
Written by: StorageUnits.com Editorial Team - Updated: Dec 18, 2024
When you keep items in storage, there's always a risk they might get damaged, stolen, or lost. When that happens, having a solid storage unit insurance policy can make all the difference. However, not every renter needs to purchase storage unit insurance. The items in your unit may not require it, or they could already be protected under your homeowner’s insurance policy.
Use this guide to determine if storage unit insurance is right for you and explore coverage options for your stored belongings.
Why Is Insurance Important for Items in Storage Units?
Most storage facilities offer security measures for their renters, from cameras and an on-site manager to regular patrols and emergency response. However, even the best security can’t guarantee that items won’t be stolen or lost in a flood, fire, or natural disaster.
Without an insurance policy to cover high-value items, your only recourse may be to appeal to property management, which could lead to a costly and drawn-out legal battle.
Protecting your unit with a good storage unit insurance policy can streamline the recovery process. Having a single point of contact experienced for claims can help you recover quickly with as little fuss as possible.
When Should You Consider Storage Unit Insurance?
Storage unit insurance isn’t essential for every renter. Additional insurance might not be needed if your unit only contains low-value items, if you have active coverage from an existing policy, or if you’re prepared to cover the expense in case of a loss. However, insurance is required or crucial for protecting your belongings in certain situations.
When to skip storage insurance
Storage unit insurance makes sense for many renters but isn’t always necessary. If you’re storing low-value or easy-to-replace items, the additional insurance cost may not be worth it. If you add a few valuable items to your unit, you can always add insurance later.
Another reason to skip tenant insurance is if another policy already covers your unit. Many homeowners’ insurance policies cover off-site items, such as those in self-storage. Low-value items in your unit are likely already protected by your existing policy.
Limitations of homeowner’s insurance
Homeowner’s insurance has limits for what it will cover away from your house. Coverage for items stored in a remote location is often capped at just 10% of your general policy. For example, if your home is covered for up to $50,000 in lost property, you might be capped at just $5,000 for items you keep in storage.
Your existing policy might be enough if your storage unit only contains low-value items. If the combined value of your stored items exceeds your limit, consider expanding your homeowner’s policy coverage or purchasing a supplemental storage insurance policy.
Critical items to insure
Valuable or sentimental items can be extremely difficult or impossible to replace if lost. Consider purchasing a policy if you plan to store any of the following:
- Jewelry
- Vehicles
- High-priced goods
- Work equipment
- Computers
- Customer data
- Albums and keepsakes
Options for Storage Unit Insurance
You have several options when you’re in the market for storage unit insurance. You can add coverage to your existing homeowner’s insurance policy, purchase it from the storage facility, or use a third-party provider. The best choice depends on your budget, rental facility, and coverage.
Adding coverage to your current policy
Talk to your current insurance agent to see if they can find you a discount for adding additional coverage to your existing policy. In some cases, you could pay less overall for bundling policies. If it’s too expensive or the coverage is capped at a level that’s too low, it may be best to look elsewhere.
Purchasing insurance from the storage facility
Many property management companies offer renters the option to add insurance to their basic rental agreement. Some facilities may even require it as a condition of renting the space.
Certain specialized high-value storage companies, such as wine storage providers, will often ask for an estimate of the cash value of your stored items. This step helps them assess the level of coverage necessary and add insurance to your policy as part of the intake process.
Buying insurance from a third-party provider
If the options above are unavailable or too expensive, you can purchase insurance from a third-party provider. Many companies specialize in self-storage insurance, offering flexible terms and budget levels. When searching for a third-party provider, shop around and compare rates to find the best option for your storage needs.
What to Consider with Storage Unit Insurance
There can be a lot to think about when buying storage unit insurance. It’s always a good idea to take your time and do adequate research before you settle on a plan. Policies have several dimensions to consider, including:
- Coverage: Ensure your policy adequately covers the value of your stored items. Certain collectibles, such as classic cars, fine wines, and other unique items, could increase in value. Periodically reassess your policy so you can maintain coverage for the total value of your items.
- Deductibles: When you file a claim, you’ll have to pay a certain amount out of pocket before your insurance covers the rest. While it can reduce your monthly fee, paying a high deductible can erase much of the value of your policy. Consider your financial situation to find a deductible that works for your budget.
- Terms: Insurance policies often include unique terms that vary by provider. One policy might require that you secure your items in a particular way, while another could impose reporting requirements if you regularly add or remove items from your unit. Carefully read the terms to understand the conditions that may affect your coverage.