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Storage Unit: Does Your Homeowners Insurance Coverage Extend?

storage unit storage unit

May 20, 2024

Homeowners Insurance

There are many reasons why homeowners might utilize storage units. But what happens if your precious belongings stored off-site are damaged or stolen? Does your existing homeowners insurance policy cover these items? Let's continue reading to find the answer to this common question and learn how to protect your valuables in storage.

What Homeowners Insurance Covers?

Homeowners insurance exists to provide financial protection for your home and its contents. Standard policies typically cover a range of perils, including:

  • Fire and lightning damage
  • Theft
  • Vandalism
  • Wind and hail damage
  • Water damage (from burst pipes or certain weather events)

This coverage extends to your belongings within the home itself. However, there are limitations when it comes to items stored outside your dwelling.

Home Insurance and Items in Storage

Many homeowners might assume their insurance automatically covers belongings kept in a storage unit. Unfortunately, this isn't always the case. While some policies might offer limited off-premises coverage, it's usually capped at a percentage (often around 10%) of your total personal property coverage amount. This means a policy with $50,000 in personal property coverage might only offer $5,000 of protection for belongings in storage.

Furthermore, off-premises coverage might not extend to all the same perils covered for your in-home possessions. For instance, some policies might exclude flood damage or theft from unlocked storage units.

Understanding Your Policy Limits

It's crucial to carefully review your homeowners insurance policy to understand the specifics of off-premises coverage for stored items. This includes:

  • Coverage Limits: How much is your personal property coverage, and what percentage of that extends to off-premises locations?

  • Covered Perils: What specific events (fire, theft, etc.) are covered for your belongings in storage?

  • Exclusions: Are there any specific perils excluded from off-premises coverage?

  • Security Requirements: Does your insurance company have any requirements regarding the security features of your storage facility (e.g., alarms, cameras)?

Storage Insurance

Given the limitations of homeowners insurance for off-premises belongings, storage insurance emerges as a valuable option. Storage facilities typically offer their own insurance, but it's essential to understand the scope of this coverage:

  • Limited Coverage: Storage facility insurance often provides essential protection against fire and theft but might not cover all perils or offer high enough limits to replace your valuables.

  • Responsibility Falls on You: You are responsible for filing a claim, and the process itself might be less streamlined than claiming through your homeowners insurance.

Other Ways to Protect Items in Storage

Beyond homeowners and storage facility insurance, here are some additional steps you can take to safeguard your belongings:

  • Conduct a Thorough Inventory: Create a detailed list of your stored items, including descriptions, photos, and estimated values. This documentation will be crucial if you need to file a claim.

  • Choose a Secure Storage Facility: Look for a facility with robust security measures, such as gated entry, security cameras, and proper fire protection systems.

  • Invest in Additional Security: Consider adding personal locks to your unit and using weatherproof containers for your belongings.

  • Raise Your Deductible: If financially feasible, increasing your homeowners insurance deductible can lower your premiums. However, ensure the new deductible is an amount you can comfortably pay in case of a claim.

Keep Your Possessions in Storage Safe with Little & Sons Insurance Services

At Little & Sons Insurance Services, our priority is keeping your treasured possessions safe, no matter the location. Contact us today to get a personalized storage insurance consultation from our experts! Call us at 1-844-954-885 for further assistance

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