Considering Your Options for Storage Unit Insurance

If any of your possessions are in a storage unit, you may be considering storage unit insurance. If you already have home or renters’ insurance, it may not cover a storage unit. Clifton Rt. 46 Self Storage in Clifton, New Jersey, offers storage units and explains more about the benefits of having a storage unit insurance policy.

What Is Storage Unit Insurance?

Storage unit insurance is a policy that covers the items in a storage unit. Most storage companies require a policy when renting a unit from them. Sometimes, a person’s home or renters insurance policy can cover offsite storage, so ask your insurance agent what your policy covers.

If the storage unit renter doesn’t have adequate insurance through their home or renters’ policy, the storage company may offer a policy of their own. However, before you sign on the dotted line, you should compare the rates like you would for any other insurance policy.

How Do Policies Differ?

Most often, a storage unit policy only offers reimbursement based on the square footage of the unit during a covered event. The reimbursement is usually the actual cash value of the damaged items and not the cost of replacing the item. In some cases, reimbursement may not cover the loss because the damage is excluded by the policy.

What Is Covered?

As with all insurance policies, some items are covered, and others are not. You’ll need to read your policy closely to understand what it includes.

With a storage insurance policy, these events are usually covered:

• Fire
• Hail
• Hurricane
• Lightning
• Smoke
• Theft
• Tornado
• Wind

There are also cases where an insurance policy may not cover an event at a storage unit. In most cases, a storage unit insurance policy won’t cover the following:

• Earthquakes
• Flooding
• Mold and mildew
• Neglect
• Poor maintenance and upkeep
• Power failure
• Vermin
• Water damage, like a water backup
• War

If you’re unsure of what events are covered in any of your insurance policies, talk with your insurance agent.

Does a Homeowners or Renters Policy Cover Storage Units?

Yes, but only to an extent. Most homeowners' and renters’ insurance policies have a concession for personal property, which is a broad term for possessions stored in your home or another site.

Most homeowners’ policies will reimburse personal property items that are damaged or stolen from a storage unit, but only up to a certain amount. Many home insurance policies will only cover up to 10% of a policy. That means if you have a $100,000 policy, up to $10,000 worth of items in a storage unit could be claimed in any event.

Most renters’ insurance policies have something called off-premises coverage. This typically has a lower limit for coverage when compared to the whole policy. Like a homeowner’s policy, off-premises coverage will usually only cover 10% or less of the total personal property coverage limit.

If a storage unit will be used to store high-value items, like jewelry, art, family heirlooms, or antiques, some insurance companies will suggest purchasing scheduled property coverage. This is a rider or endorsement that will provide additional coverage to the policy. This type of policy may require each item to be professionally appraised before getting the endorsement.

Which Policy Is Right?

There are no right or wrong storage unit insurance policies. The best way to find the right policy for you is to do your research. Look at:

• What each policy covers
• Terms and conditions
• Coverage limit
• Premium costs

Each policy is different, so read the fine print before considering your options for storage unit insurance.

Chose the Right Storage Facility

After you choose your insurance policy, you’ll want to make sure you select the right storage facility to rent a unit.

Clifton Rt. 46 Self Storage in Clifton, New Jersey, offers a safe and affordable spot for customers to store their belongings. There are many different-sized units available, making it easy to store anything from holiday decorations to camping gear to extra furniture, and everything in between. If you’re looking for a storage unit, contact us today and schedule a site tour.