If you are going to store your belongings in a self-storage unit, you are probably wondering whether or not they are insured. After all, the unit could catch on fire, be broken into, or be otherwise damaged, leaving your valuable property at risk. The good news is that most self-storage companies offer insurance, but before you purchase it, make sure you really need it.
Insurance Is Not Automatic
The first thing to understand about self storage insurance policies is the fact that they are not automatically applied to your belongings. Some companies have policies already in place, and if they do, the cost of your rental will cover the insurance premium. However, this is rare. Most companies are competing to get your business by having the lowest possible rate, and as such they do not build insurance into the cost. This will only cause them to lose business to companies advertising lower rates. However, you can usually get insurance if you want it, but you will have to pay for it.
Of course, some items are covered under the insurance policy the building’s owner has. For instance, fire is typically covered under the owner’s insurance policy. Theft and weather damage, such as the damage that may occur if there is a tornado or windstorm, is not necessarily part of this coverage.
You May Not Need It
If you own your own home and have a homeowner’s insurance policy, you may not need insurance on your items in storage. Before you sign up for the insurance policy offered by the storage company, check with your current insurance provider. Your insurance policy likely covers your possessions, and this may include possessions store off of your property. Most insurance policies cover all of the property of the homeowner no matter where it is in the world. Of course, your deductible and any exclusions that apply to the homeowner’s policy also apply to the items you are storing, so if you feel that your belongings will not be adequately insured, be sure to purchase the policy.
Of course, if you are using the storage unit to store a vehicle, this will not be covered under your homeowner’s policy. Almost all homeowner’s policies exclude the vehicles that the property owner has. This makes the need for automotive insurance more real. If the car is not insured, then purchasing the additional insurance policy is a good idea.
Most renters’ insurance policies work in a similar way. Since they insure the ‘contents’ of the rental home, they also protect the belongings you put in storage. Again, check with your current insurance provider to determine what coverage you already have before you purchase the coverage offered by the rental unit.
What if You Are Not Covered?
If you do not have an existing insurance policy that will cover your belongings while in storage, you will have to decide whether or not the cost of the rental unit insurance is worthwhile. The only way to do this is to determine how valuable the items you will be storing are, how upset you will be if you lose them, and then choosing whether or not the cost of the policy make sense in light of the value of your belongings.
Keep in mind that you are not protected, even if the rental unit’s owner allows you to rent without insurance. Even the best security measures can be overcome, and no one can protect your belongings from a natural disaster. If something happens to the building, your belongings will be lost, and you will be left with nothing. If you do not want to see this happen, consider purchasing insurance for the items you place in self storage.
