Insurance Needs For Residential Storage
If you're considering putting items in a residential storage unit, it's important to understand your insurance needs. If you assume that the residential storage company covers your stored items, you may be in for a surprise in the event of a fire or other disaster. Here is everything you need to know about insurance coverage before you use a residential storage unit.
Does Your Residential Storage Unit Have Insurance?
The short answer is no. In most cases, the storage facility will have insurance covering their structure but not your possessions. However, some facilities may offer limited coverage for purchase, similar to how you can add insurance to a car rental. It is important to ask if they offer any type of coverage before signing up.
Does Your Existing Policy Extend to a Residential Storage Unit?
Again, no. Most renters' and homeowners' policies do not cover possessions stored off-site in a residential storage unit. Still, checking with your insurer for details specific to your policy is important. There are some exceptions, so it's always best to check with your insurer directly before signing up for a residential storage rental agreement.
Should You Buy a Separate Insurance Policy or Rider for Residential Storage?
Purchasing an additional insurance policy or a separate rider specifically designed for covering off-site items can provide peace of mind knowing that your belongings are protected from theft, fire, storms, and flooding. Some policies even include liability protection if someone else is injured while visiting the facility or handling one of your items in the unit. However, make sure to explain that the insurance is for items in a residential storage facility to avoid confusion.
It is important to note that you will need an itemized list of everything you place in the storage unit. For example, in the event of a fire, you will need proof of what you lost. Include any serial numbers, photos, and receipts, and keep everything in a safe location, preferably in the cloud.
What Items Should You Not Place in Residential Storage?
Most standard policies will not cover certain items, including:
- Jewelry
- Artwork
- Antiques
- Cash
- Collectible coins
- Credit cards
- Stocks and bonds
- Explosives or other flammable items
- Firearms and ammunition
- Computer software and data
In addition to these restricted items, some policies may surprisingly exclude coverage on items that suffer wear and tear due to age, like furniture. Read your policy carefully to fully understand what is covered and what is not.
Understanding what type of coverage is available when renting out a residential storage unit can help ensure that you're properly protected against loss or damage. With the right information, obtaining the proper coverage for your items in residential storage can be easier than ever.
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