Insuring Your Items in Storage

“Out of sight, out of mind” – this is something that self storage facilities want to provide their clients. But for people who are looking for a self storage facility, it is important to remember that nothing is foolproof. Even if you made the right choice, anything can happen when your belongings are stored in a remote location. The risks, inevitably, are high. It might be a good idea to insure your items.

While some self storage facility offers coverage, not all of them do. Their insurance policy mainly covers the damage to the storage building itself and this does not extend to your belongings. Additional self storage insurance is usually available at a low monthly fee. Ask the self storage facility manager if you can combine this fee with your rental free. Insuring your items in storage has notable benefits including the following:

•    Low Cost/Low Deductible – the cost of insurance is quite low. For example, if you’re renting a facility for $2,000, the cost of insuring your items can go as low as $8 a month or even less. The insurance covers theft, water damage, fire, and other accidental circumstances. The deductible is also low.
•    Separate Deductible – claims are filed through the facility’s insurance firm, instead of your own insurance firm. As a result, claims would not affect your homeowner’s insurance premium or cause your personal or business insurance to be cancelled.
•    In-Transit Coverage – in-transit insurance are not offered through homeowner’s insurance policies. But most insurance policies offered by storage facilities cover items that are in transit, up to a 50-mile radius. That means your risks are significantly minimized. Take note that a lot of damage to belongings occurs when the items are being transported.
•    Supplemental Coverage – business owners typically already have insurance that covers equipment and related items that are stored in self storage facilities. However, it may still be a good idea to invest in the insurance offered by the facility. It offers supplemental coverage of the stored items.

Majority of items that are stored can be covered by the self storage insurance policy. But there is an exception: vehicles. These firms would require your vehicle to be covered by an auto insurance policy. They will ask for the paperwork when you sign up for the lease. If you plan to get coverage for your items, estimate how much the items are worth. This calculation will give you the approximate amount you should pay for insurance.

Ask the self storage facility about the insurance and make sure to read everything including the fine print before signing the contract. Overall, getting an insurance policy for your items in storage is a good investment. The amount required for coverage is relatively low while the rewards are high.