You will need storage insurance to protect your belongings when stored in storage facilities. Most storage companies will require you to have it.
The coverage typically covers items such as furniture and appliances in the home, office and business equipment, machinery, and personal belongings.
A storage unit is often used to free up space in your home or store your belongings when you move house or travel for a long time. You could use a storage unit to help you sort through the belongings of a deceased loved one.
This is how storage insurance works in detail.
What is storage insurance?
These are just a few examples of the protection that storage insurance provides.
- Water damage due to burst pipes and water escape
- Theft
- Explosion and fire damage
Natural disasters such as flooding and storms can cause damage.
- Vandalism or malicious acts
- Subsidence damage
- Moth, vermin, and insect damage
- Vehicles and aircraft impact
- Sprinkler damage
- Collapse or partial collapsing of the building
What storage insurance do I need?
You need specialist storage insurance to protect your belongings from theft and damage. Most storage companies will require that you have this coverage before you rent a storage unit.
However, any insurance the storage provider has will not protect them from liability if they are found negligent in storing your items and causing damage.
What are the protections offered by home insurance for storage items?
The insurance company will determine whether your home contents policy covers items stored in storage. Many policies will cover your belongings while they are ‘in transit’ to help you move home. Some will also cover items that must be temporarily stored.
This coverage is typically limited to seven days and therefore won’t cover items that are kept in long-term storage. You should also check the terms of your policy to see if it covers jewelry or valuable items.
If your contents insurance covers ‘alternative accommodations’, you may be able to get coverage if you have to move from your home due to an accident such as a fire, flood, or another natural disaster. However, this coverage is usually limited to 90 days.
Are storage providers able to offer their insurance?
You can purchase storage insurance from the same storage provider as your rental unit. You don’t necessarily have to buy it. It’s possible to find a better deal if you shop around for your standalone storage policy from an expert provider.
Compare quotes before you decide to go this route. Make sure you compare both the cost and what coverage you will get. Many policies don’t cover any items in transit. Some items, such as:
- Contaminants that could be dangerous, such as flammable liquids and toxic chemicals
- Cash or currency
- Explosives, weapons, and firearms
- Perishable or food items
- Living animals
- Vehicles
Also, check whether your policy has any limits for single items. Your insurer may not cover an item that is more than PS1,000 unless it’s separately listed.
Your insurer may have specific rules regarding how you store your belongings. You might need to secure your unit with a particular lock or keep your belongings in waterproof containers. These rules can cause your insurance to be invalidated.
How much does storage insurance cost?
You will need storage insurance for a variety of reasons. These include the sum insured, the value of your items, and whether any items must be listed separately.
It is essential not to be underinsured. Make a list of all the items you wish to store, calculate the cost of each item to replace it, and then add up the total cost.
Can I extend my storage policy?
You may be notified by your provider when your policy is due to expire. If necessary, you can apply for an extension. In other instances, you will need to apply again for a new policy.
Before you sign up for a policy, make sure to review the terms.
What about storing my items elsewhere?
Specialized storage insurance will cover only items stored in official storage facilities. If you are thinking of storing some of your belongings in a friend’s garage, this will not be covered.
Your home insurance policy won’t cover your belongings. However, your friend might have home contents insurance that covers your items depending on what you store and where. It will need to be located within the property’s boundaries if it is a garage, for instance.
Ask your friend if they have enough coverage for their home contents and if there are limits. For an additional cost, costly items may need to be added to the policy.
Online services allow people to find storage space and rent it out. These services usually offer basic insurance coverage – Stashbee, for instance, covers items up to PS1,000
