Storage Unit Insurance: What Is It and What Does It Cover?

Storage unit insurance is usually included in homeowners or renters insurance, so if you already have a policy, your belongings are probably covered no matter where they are in the world.

However, storage unit insurance can be purchased separately from specialized vendors. If you don't already have renters or homeowners insurance, or if the property you're storing is valuable, this could be a good option. Here's what you should know if you require storage unit insurance.

Does renters insurance cover storage units?

Renters insurance covers your belongings in a storage unit for up to 10% of your policy limits, as long as the facility does not exclude those items.

• So, if the personal property limit on your policy is $10,000, your policy will typically cover $1,000 in items.

However, if your home is unfit to store the items, such as while you renovate or repair it, your policy may cover the entire value of your belongings.

• Assume you're painting your home office and need to move a stack of books into storage. If those books are damaged while in storage, your policy will compensate you for up to the full coverage limit, rather than just 10%.

Do storage units have their own insurance?

Storage companies almost always offer their own policies or policies from a third-party specialty insurer because self-storage facilities require customers to have insurance. These policies, however, may exclude certain types of water and smoke damage, leaving you vulnerable to financial loss. Before signing a contract, as with any policy, double-check what is and isn't covered.

How much is storage unit insurance?

Depending on your provider, storage unit insurance can range from $8 to $38 per month for $10,000 of coverage. While this figure may appear low in comparison to the amount of personal property coverage in a typical renters or homeowners policy, keep in mind that you will not need to insure everything you own. Only items in storage require protection.

Rates for self-storage insurance providers

SafeStor and MiniCo are the two largest companies that specialize in self-storage insurance.

• SafeStor works with customers both directly and through self-storage facilities. SafeStor provides three policy limits, with a maximum coverage of $15,000 available for $24 per month with a $100 deductible. Its policies prohibit the purchase of expensive items such as jewelry.
• MiniCo policies do not have deductibles, but they are more expensive. MiniCo provides customers with over a dozen plans, with a maximum policy limit of $75,000 for $240 per month. MiniCo, like SafeStor, excludes specific items from coverage.

When we compared the rates of the two largest specialty self-storage insurance providers, we discovered that SafeStor is less expensive than its main competitor, despite its limited coverage options. However, regardless of which provider you purchase coverage from, you have access to the entire policy rather than just the 10% limit imposed by most renters and homeowners insurance policies.

Comparing rates of the leading self-storage insurance providers

This means that a less expensive policy may provide more efficient coverage than your current homeowners or renters policy.

Rates for insuring storage units with renters or homeowners insurance

The cost of renting or buying renters or homeowners insurance is determined by your options.

• Typical renters or homeowners insurance policy: In most cases, homeowners and renters insurance policies cover stored property for up to 10% of the total coverage limit of the policy. So, if you have a $25,000 policy and $2,500 in storage coverage is insufficient to cover your belongings, you'll have to pay more for additional coverage.
• Expanded renters or homeowners insurance: Increasing the overall limit of your policy to cover more of your belongings is a relatively inexpensive option. According to the average cost of renters insurance in New York City, increasing your limit from $15,000 to $25,000 could cost you around $20 per year.
• Add endorsements: You can also protect specific items or groups of items that are not covered by your insurance policy. You can insure unique and expensive items, such as jewelry, by adding endorsements or floaters to your standard home or renters insurance policy. The cost of endorsements and floaters is determined by the nature of the item and the level of coverage desired.