According to the Self-Storage Association, one out of every 10 households in America rents a self-storage unit. This means that millions of American families are comfortable that their possessions are safe and well-protected at their local self-storage facility. In most cases, they are correct.

Most of today’s self storage facilities, like Handy Storage, are equipped with solid security systems that deter crime and vandalism. LED lighting, 24-hour digital surveillance, electronic gates with keypad access, and full perimeter fencing discourage the average criminal. Many facilities have added smart units and keyless entry systems that require only an app on your mobile phone. Despite these precautions, however, there are no guarantees.

You need to be prepared for things like water main breaks and natural disasters. There is no storage facility that automatically takes responsibility for all damages to your possessions.

Why Do I Need Self Storage Insurance?

You need self storage insurance as an added layer of protection to your belongings. The National Association of Insurance Commissioners states that even though items in a storage unit are not physically in your home, your homeowner’s policy may help protect those items (“off-premises” items) from certain hazards. Homeowners’ insurance typically includes personal property coverage, which may include protection from certain risks for clothing, appliances, electronics, and furniture. These items are covered only up to the coverage limits on your policy.

• If certain damages are not included in your homeowner’s policy, storage facility
  insurance is a good idea.
• If you don’t have homeowner’s/renter’s insurance, you should purchase self
  storage insurance because it is specifically tailored to hazards that might be experienced with self-storage.
• If you own self storage insurance, filing a claim with your facility will be less complicated.

Keep in mind that It is critical that you check with your insurance agent to verify exactly how much coverage you have for “off-premises” items.

Will homeowners/renter’s insurance cover your storage unit contents?

• According to the Insurance Information Institute, coverage for items in a storage unit is
  generally provided by the “off-premises” personal property coverage in a homeowner’s
  policy. Check your policy to determine the types of risks covered. Typically covered are fire, lightning, theft, and vandalism.
• “Off-premises” personal property generally has a coverage limit of up to 50% of the
  policy’s dwelling coverage limit. This means that, without the addition of self storage insurance, your stored items will be covered for only half of their value.
• Many homeowner’s policies have lower limits for property located away from your
  home. For example, if you have $75,000 coverage on your personal property under your
  homeowner’s policy, coverage for “off-premises” property may be capped at 10% or
  $7,500.
• Renters insurance typically covers items in a self-storage unit for up to 10% of your
  policy limits.

What if the value of your stored items is greater than your “off-premises” coverage?

• You may be able to increase the coverage limit in your homeowner’s insurance policy. This could provide you with an increased limit for “off-premises” items.
• If you’re placing high-value items in your storage units, such as art or jewelry, you might
  want to explore “scheduled personal property” coverage. This coverage is specified to
  protect those items. This may involve professional appraisal of certain items.
• Add self storage insurance for that extra layer of protection.

What Events are Covered by Self-Storage Insurance?

What Events are Covered by Self-Storage Insurance?

• Fire
• Theft
• Hurricane
• Tornado
• Wind
• Hail
• Lightning
• Leaking Water (excluding flooding)
• Smoke
• Earthquake

What About Vehicles?

• Cars, boats, motorcycles, RVs, and other vehicles must be insured separately.

What About Valuable Items?

Certain items may be covered up to a specific dollar amount or not covered at all. You may be able to get a rider or endorsement for extra coverage. This is a discussion that you need to have with the facility manager.

• These items include:
• Furs
• Jewelry/Watches
• Artwork Collections
• Antiques
• Deeds and Legal Documents
• Stamp Collections

What is Not Covered?

• Vermin
• Mold and Mildew
• Flooding
• War

In Closing

Purchasing self-storage insurance is an individual decision, dependent on your needs. As mentioned above, you need to check with your insurance agent and discuss your options with the manager of your chosen facility. In any case, don’t risk financial loss by being uninsured.