What is Storage Unit Insurance and Do You Need It?

Written by Posted On Tuesday, 17 March 2020 05:00

The salesperson at your storage space tried to sell you storage unit insurance. What is it, and do you need it? We give you an honest answer.

Billion-dollar disasters in the US increased two-fold between the years 2016 and 2018, hitting a record high of 15 catastrophic events each year. The total losses caused by these events, according to the CBNC, amounted to $91 billion. Valuable items in storage are often the most affected in the case of natural disasters.

It is highly recommended that you take up an insurance cover that would indemnify self-storage contents in case of such events. Considering the apparent increase of billion-dollar disasters, paying for storage unit insurance would be a worthwhile investment.

So recently, the salesperson at your storage space tried to sell you storage unit insurance. What is it, and do you need it? We give you an honest answer here.

What is Storage Unit Insurance?

You've amassed lots of valuable possessions over time. Some no longer fit in your house, or maybe you need additional space for new items. While you do not want to forfeit some of this stuff, you may need to look for alternative storage options.

This is the premise on which storage units exist. 10% of all Americans have rented a self-storage unit at some point. However, the safety of the stuff in such storage units often comes to question whenever instances of extreme weather conditions hit the country.  

Are your self-storage contents safe in the wake of these catastrophic periods? That answer can only be in the affirmative if you have an insurance coverage plan. Storage unit insurance covers the full extent of your stored property anywhere in the world.

You are entitled to full compensation for any losses or damage to such property in case of certain specified events. It may become a necessity to apply for self-storage content insurance in the future. This is especially relevant now that threats from natural disasters are more common in the United States.

What Makes Storage Insurance a Necessity?

Well, the answer is hidden in the original objective of insurance. You need to cushion yourself and your property against unforeseen risks. If you have opted to store some items in a storage unit, then they must be important. 

Most of the items stored in these units have timeless value to the owners. You will undoubtedly incur significant financial losses if specific calamities strike. 

The owners of storage facilities can prevent the occurrence of theft and malicious damage. However, other instances, such as fire, floods, and earthquakes, are beyond human control. You may never get to recover from such cases of extreme losses without indemnity. 

Having reliable insurance coverage for all your self-storage will guarantee you peace of mind even in the wake of the work weather season. 

What Are the Named Perils Covered in the Self-Storage Insurance?

Depending on your insurer, storage unit insurance covers a variety of named perils. For easy categorization, these events fit into usual or unusual occurrences. Routine occurrences are events that are an orchestration of human beings. They include riots, theft, malicious mischief, or plumbing related faults such as leaks.

Unusual events include all acts of God, which the storage unit owners cannot control. Windstorms, hailstorms, floods, and snow are typical examples of such unnatural events. If you can find a reliable insurance provider, then all these common perils are well-covered before-hand.

Is There a Provision for Storage Units in Renters Insurance?

Yes, most renters' insurance policies will cover your property while inside the storage units. But you need to ensure that your storage facility's insurance covers the items you intend to store. Depending on the existing agreement, your renters' insurance policy will likely protect up to about 10% of the stored items. 

The exception to this aspect is in the circumstances under which you decide to store such belongings. If you can validate your reason for seeking storage space, then it is likely that you may be fully insured. Such instances include cases where your home is undergoing renovation.

You will still be eligible for insurance coverage for your stored items as long as these items are part of the renter's insurance agreement

The Limitations to Renter's Insurance 

You need to be fully acquainted with your storage facility's approach to insurance coverage before committing. It is common for these facilities to use unfair means as a tool towards coercing you to buy into their insurance. However, when you observe keenly, you will realize that most of the renters' insurance policies exclude certain critical items in their agreements. 

Such exclusions include motor vehicle coverage. You may need to purchase a separate auto insurance cover for your motor vehicle if your renter's cover does not include such coverage. You may also need to seek alternative coverage for other risks, such as damage caused by rodents. 

You may also need to consider other insurance coverage options for your expensive items and documents because most storage facility insurance excludes such costly items such as collectibles and artwork. You need to be aware of these dynamics before settling on a suitable storage insurance option for your self-storage items. 

Where to Find the Best Storage Unit Insurance

Whichever your reasons for seeking a storage unit insurance cover, you must be keen to ensure that your coverage is inclusive. You may need to be extra vigilant before deciding on what works best for you. One of the easiest ways to access a reputable insurer is via online searches.

Websites for the specific providers will give you all the details you need about each company. This allows you a chance to go online and seek referrals through case reviews and testimonials.  

With the changing dynamics around technology, you can be able to access and purchase storage unit insurance online. This option comes with the luxury to decide on your most preferred store facility.

Your Valued Possessions Are Safer With Reliable Self-Storage Insurance

The inevitability of life makes insurance coverage an unavoidable necessity. Now that you are willing to pay an extra cost for the storage of your valuables, it is a statement of the attachment you have to them. The only other thing left to do is to consider a storage unit insurance to guarantee extended-term indemnity in the event of a calamity.

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