With the use of self-storage units rising, we frequently hear the question: “Does my renter’s insurance cover the contents of my storage unit?” The simple answer is yes! However, there are a few stipulations to storage unit contents being covered:
1. You have to have an active renter’s policy with an up to date rented property address
2. Most policies have limits regarding certain types of personal property, i.e. jewelry, electronics, or money
3. Most renter’s policies will only provide coverage for property lost due to theft; not property lost due to flooding or pests
4. Most policies will provide coverage for the storage unit for 10-15% of the personal property coverage on your renter’s policy. For example, if you have $50,000 in personal property coverage on your renter’s policy, the policy will provide $5,000 in coverage for contents in your storage unit
The majority of self-storage complexes offer insurance to customers through a third-party vendor to cover your belongings. While this could be a good option it can be expensive. All policies are tiered so the monthly cost will vary depending on how much property coverage you request.
When deciding what coverage to go with, start by analyzing what you think it would take to replace your personal property in the event it is stolen from your storage unit. Based on the value you come up with you would then want to analyze which insurance option is most cost effective. Is it better to increase your personal property coverage on your renter’s policy to a limit that would provide the proper coverage for your storage unit or would it be better to pay for a monthly policy through the self-storage company?
Whatever you decide be sure to keep your insurance agent in the loop so they can ensure you are properly covered. While this is not a complicated process, it is an important process. Losing everything you have in a storage unit due to theft would be a difficult financial loss so prepare ahead of time and protect yourself and your hard earned belongings.