You may think that successful self-storage means your extra stuff is out of sight, out of mind. But it’s just as easy to overlook insuring your prized possessions when they’re stored remotely. In most cases, your homeowner’s or renter’s insurance policy may offer some coverage for the contents of a storage unit.
Self-storage facilities’ insurance should include coverage of any damage that occurs to the storage building itself, this protection does not extend to your business or personal belongings. Tenant insurance is usually offered for a minimal monthly fee that is combined with your rental fee for one easy payment. This small investment translates into some notable benefits:
- Low cost / low deductible – You may be able to save quite a bit on the cost of insuring your items by going with a self-storage facility policy. For example, at Extra Space the IAT policy offers $2,000 to $10,000 of insurance coverage on your belongings for a monthly fee of $9 to $40. This insurance covers damage to your belongings in the event of a variety of accidental circumstances, including fire, water damage, and theft. You can also purchase flood insurance, not offered at most self-storage facilities. The deductible is ZERO, which means this policy could be used in conjunction with a homeowner’s insurance policy that has a high deductible.
- Separate deductible – Claims are filed through the tenant insurance company, rather than your own insurance company. Therefore, these claims will not affect the amount of your monthly homeowner’s or renter’s insurance premium, nor cause your personal or business policy to be cancelled.
- In-transit coverage – Some tenant insurance policies cover items that are damaged in transit –– up to a 50-mile radius. This is coverage that might not be offered through your homeowner’s or renter’s insurance policy.
- Supplemental coverage - If you are a business owner, you may already have insurance that covers equipment and other items you’ll be storing in a self-storage unit. However, you may wish to consider investing in the insurance offered by the storage facility, as it provides good supplemental coverage for your items.
Most items commonly stored are covered under self-storage insurance policies, one exception is vehicles. Most require stored vehicles to be covered by an auto insurance policy. You will need to provide proof of this coverage when you sign your storage rental lease. Review a tenant insurance policy to find details about what is covered and what is excluded from coverage.
Whether you are planning to store your personal belongings or items for your business, make sure to calculate how much you estimate your items are worth. That way, you can purchase the appropriate amount of insurance and have peace of mind that your belongings are covered.