Insuring the Contents of Your Storage Unit
Do you know how to insure your storage unit? Fall has arrived, and it is time to put your summer toys in storage. It is also an excellent time to review your insurance policies to verify that you have sufficient coverage on where you are storing your belongings.
Do You Need a Separate Storage Unit Policy?
People often think that they need a separate policy to cover the contents of their rented storage unit. The good news is that those items are usually covered under your renter’s or homeowner’s policy. However, if you don’t have either of those policies, you can purchase a stand-alone storage unit policy to protect your belongings.
Know Your Homeowner’s Policy Limits
There are limits to what your homeowner’s or renter’s policy will cover. Typically, they cover your belonging outside of your residence (such as in your storage unit) for up to 10% of your policy limits. The other requirement is that the storage facility doesn’t exclude those items.
Here’s an Example
So if your policy’s personal property limit is $100,000, then your policy will typically cover $10,000 worth of items.
There Are Some Exceptions to Policy Limits
if your home is unfit to store the items, such as while you renovate or repair your home, your policy may cover a percentage or the entire value of your belongings.
Here’s an Example
For example, if you recarpet your home office and move your library of books into storage, your policy would compensate you for up to the full coverage limit instead of only 10% if those books get ruined while in storage.
Don’t Storage Units Have Their Own Insurance?
Self-storage facilities typically require customers to have insurance. If you want to rent space from them and don’t have a policy, they will usually offer to sell you their own policy or one from a third-party specialty insurer. These policies may exclude some forms of water and smoke damage, which could leave you vulnerable to financial loss. Always check what is and isn’t covered before you sign any contract.
Know What You Have in Storage
Create an inventory of the items you have in your storage unit. Update this inventory each year so that you have an accurate record of where your things are. Having photographic or video records along with your inventory will help if you need to file a claim. For more information on creating an inventory, read this article on Creating a Home Inventory.
If you have more questions about how to insure your storage unit or any of your insurance needs, you can count on the five-star rated, reliable, independent insurance agents at Hermann Insurance. Contact us today!