Are Self Storage Units Insured?
Are Self Storage Units Insured?
Self storage units are a great way to store your belongings when you are short on space. However, many people are unsure if their items are insured while in storage. In this article, we will answer that question and more! We will explain what self storage is, what self storage insurance is, and why renters need it. We will also provide tips on how to minimize your risk and protect your belongings while in storage.
What is self storage?
Self storage units are a type of storage unit that is rented out to tenants. These units are typically located in warehouses or other storage facilities. The self storage industry is growing rapidly, as more and more people are using these units to store their belongings.
What is self storage insurance?
Self storage insurance is a type of insurance that covers the belongings stored in a self storage facility. Each tenant is responsible for their own belongings and must purchase insurance in order to protect them and the facility they store their belongings in. This insurance is separate from the insurance that covers the self storage facility itself. Self storage insurance is offered through the storage provider and is usually a small amount like $10 or $20 a month. If something should happen to your belongings there is a deductable as well as a maximum amount you can claim on your insurance, like $5000.
Why do renters need it?
As mentioned above the self storage facility has its own insurance, but this does not cover the belongings in your storage unit. If something should happen, like a theft or a flood, tenants would contact their self storage insurance provider either directly or through their storage provider, but the storage facility would not replace the value of their belongings. The renter's belongings are not covered under the facility insurance.
How to minimize it?
There are two things renters can do to minimize the cost of their self storage insurance.
If you have insurance on your house or apartment, this will usually cover the replacement cost of your belongings when they are in self storage since they are deemed 'temporarily away from your home'. However, you will need to provide proof that you have insurance by bringing a copy of your policy. Self storage providers are very strict about letting renters in the facility without insurance.
The second is to only rent the space you need. insurance can sometime be priced based on the square feet you occupy. For example, a small 5x5 unit, which is 25 square feet, can sometimes cost less to insure than a 20 x 20, which is 400 square feet.
If you are storing things of value, it is always better to err on the side of caution and get a storage unit that is just big enough for what you are storing. This will minimize your insurance costs as well as your storage costs.
