Can You Insure a Storage Unit? What You Need to Know

It is possible to insure a storage unit. While storage facilities implement various security measures, items within units remain susceptible to unforeseen events such as natural disasters, theft, or accidental damage. Obtaining coverage for these possessions offers a safeguard against potential financial burdens.

Types of Storage Unit Insurance

Individuals typically secure insurance for items in a storage unit through two primary avenues: extending existing homeowners or renters insurance, or acquiring a dedicated storage unit policy. Homeowners and renters insurance policies often include “off-premises” personal property coverage, which can extend to belongings stored elsewhere. This coverage, however, often comes with limitations, often capped at 10% of your total personal property coverage, and may not adequately cover high-value items or certain risks specific to storage environments.

Dedicated storage unit insurance offers coverage specifically designed for contents. These policies often provide higher coverage limits and may include protection against perils not typically covered by standard homeowners or renters policies, such as mold, mildew, or pest damage. A distinct advantage of a dedicated policy is that claims filed against it generally do not affect the claims history or premiums of your primary home insurance. Many storage facilities also mandate that renters have some form of insurance, and they may offer their own plans or recommend third-party providers.

What Your Policy Covers and Excludes

Understanding the scope of coverage is important for any storage unit insurance policy. Policies cover losses or damage from specified perils, including fire, theft, and vandalism, though theft claims often require proof of forced entry. Coverage extends to damage from water (such as burst pipes or roof leaks), windstorms, hail, lightning, smoke, explosions, and building collapse.

Common exclusions include damage caused by pests like rodents or insects, and losses from floods (rising surface water) or earthquakes, which often require separate riders or endorsements. Damage resulting from improper packing or the inherent vice of the items themselves is excluded. Certain high-value items, such as cash, irreplaceable documents, or some jewelry and collectibles, may have sub-limits or require specialized coverage through scheduled personal property riders. Policies also include limitations, such as deductibles (the out-of-pocket amounts you pay before coverage begins) and overall policy limits (the maximum payout for a covered loss).

Steps to Insure Your Belongings

Before selecting a policy, creating a detailed inventory of the items you plan to store is a first step. Document each item with photographs or videos, and retain receipts or appraisals for proof of ownership and value. This record helps determine the appropriate coverage limits needed to protect your possessions.

Inquire with your chosen storage facility about any mandatory insurance requirements or preferred insurance providers they may have. Some facilities require proof of insurance as part of the rental agreement. When gathering information for quotes, be prepared to provide the total estimated value of your goods, the type of storage unit, its location, and any security features of the facility.

Compare different insurance options by reviewing coverage limits, deductibles, the specific perils covered, and any exclusions. Consider the premium costs in relation to the level of protection offered. Before finalizing your decision, read and understand all policy terms to ensure the chosen coverage aligns with your needs.

Filing a Claim

Should a loss occur, take immediate action to facilitate the claims process. Document the damage or loss thoroughly with clear photographs and videos. If the incident involves theft or vandalism, promptly contact local law enforcement to file a police report, as this report is often required for your insurance claim.

Notify your insurance provider promptly to initiate the claim. Provide your policy number, the date of the loss, and a brief description of the incident. Following this initial report, submit all supporting documentation, including your detailed inventory, any police reports, photos of the damage, and receipts or appraisals for the affected items.

An insurance adjuster will be assigned to assess the damage and determine compensation. Cooperate fully with the adjuster throughout this process, providing any additional information they may request. Upon completion of the assessment, the insurer will communicate the resolution and the payout amount, which will be subject to your policy’s terms and any applicable deductible.