What is Self-storage Insurance?
Written by: StorageUnits.com Editorial Team - Published: Nov 6, 2023
Should you consider purchasing self-storage insurance? The Self Storage Association reports that approximately one in 10 households in the U.S. currently store possessions in rented storage units. If this enormous amount of stored property is uninsured, property owners cannot recoup their losses in the event their property is damaged. A typical self-storage insurance policy can cover an average of $25,000 in property damage. This coverage provides peace of mind to people with possession stored outside of the home.
If you are unsure what self-storage is or what it covers, the following guide provides more information on the purpose, benefits, limits, costs, and availability of self-storage insurance. After learning about your current coverage, you may decide to contact one of the self-storage insurance providers recommended below.
What Does Self-storage Insurance Cover?
What exactly is covered when you purchase a self-storage insurance policy? This type of insurance is designed to protect your best interests in the event your property is damaged or stolen while in self-storage. When your stored property is insured, you can file a claim with your insurance provider to receive compensation for your losses. It is important to be aware of what is protected before you store any valued property.
Many property owners are already covered by other forms of insurance. If you own homeowners or renters insurance, your stored property is likely already covered. Your insurance may cover damage to stored property caused by events such as:
- Wind and weather damage
- Damage caused by heavy and/or falling objects
If you do not already have homeowners or renters insurance, you may want to consider buying a stand-alone self-storage policy that will likely cover all of the above damages. However, some stand-alone policies will cover damages that typical homeowners or renters policies will not, such as:
- Water damage
- Pest infestation
Every insurance policy is different, so it is important to compare before buying a policy. To receive compensation for property loss or damage, the cause of damage must be explicitly listed in your self-storage insurance policy. If your property is stolen or damaged in self-storage, you will need to contact your insurer to find out which exact damages will be covered by your policy.
What Is Not Covered by Self-storage Insurance?
Whether you have homeowners, renters, or a stand-alone self-storage insurance, some damages will likely not be covered by your policy. For example, it is rare that flood damage is covered in a self-storage policy. While water damage caused by the storage company’s neglect is often covered in insurance policies, natural disasters (like floods) that are not the fault of the storage company will not be covered.
Additionally, one of the main damages or losses that you will not be able to claim are those caused by your own neglect. For example, if you go a long time without visiting or maintaining your storage unit and your property is faded and worn, you cannot file a claim for those damages. Similarly, wear and tear damages from age or use are not covered in your policy.
Worried that your policy does not adequately cover your stored property? Research other policies carefully to review their exceptions or contact your provider to learn more. If you are storing exceptionally valuable or delicate property, a specialty policy may be the right choice to ensure your property is fully protected.
Who Needs To Have Self-storage Insurance?
Is self-storage insurance the right choice for you? If one of the following scenarios describes your situation, it is worth researching your options to ensure your stored property is protected.
- You do not already have homeowners or renters insurance
If your home is not insured, then any property you have in storage is not protected at all. If homeowners or renters insurance is not right or necessary for you at the moment, you will need to purchase a stand-alone self-storage policy to protect your storage unit.
- You are in-between renting and buying
Some phases in life leave you with a lot of stuff and no storage. If you are transitioning from renting to buying, you may need somewhere to store your things. In these cases, it is worth considering a self-storage insurance policy to make sure your possessions are protected while you transition from one phase to the next.
- You are storing highly valuable property
Most property in storage is everyday furniture, memorabilia, clothing, or other inexpensive but personally valuable items. However, you may be interested in storing fine jewels, fur, art, or wine. In this case, you may need extra protection above what is generally offered in homeowners or renters policies alone.
How To Pick Self-storage Insurance
No matter your situation, there are many options available to insure your property in a storage unit. If you are choosing between different self-storage policies, ask yourself the following questions:
- What am I storing in my unit?
- What is my budget for self-storage insurance?
- Is my storage unit adequately protected by a policy I already have?
- What damages will be covered under the self-storage insurance policy?
- What exceptions are not covered under the self-storage insurance policy?
The answers to these questions should help you find the right policy. By reviewing the details of potential policies carefully, you can learn more about what coverage best suits your storage needs.
Homeowners and Renters Insurance
If you rent or own a home, you likely have already invested in homeowners or renters insurance. But you might find that your current policy does not meet your current storage coverage needs. If that’s the case, you may need to find a new homeowners or renters insurance policy that protects any property you currently have in a storage unit.
To find a homeowners or renters insurance that works for you, analyze each policy’s self-storage coverage. Many of these insurance policies cover up to 10% of the policy’s overall homeowner coverage. If the property you have stored is worth over 10% of your policy’s coverage, it is a good idea to purchase an additional policy or extended coverage.
Self-Storage Insurance by Storage Providers
Are you currently uninsured and looking for a storage provider? Many offer their own form of self-storage insurance that is often an additional fee to the monthly cost of storage. If you are not currently insured, this add-on may be a convenient and simple way of protecting your property.
Storage providers may require their customers to insure their property before renting a storage unit. Purchasing insurance from your storage provider can meet this criteria and ensure that you have a base level of protection for your stored property. However, policies from storage providers may not cover damage from water, smoke, or mildew.
Self-storage Insurance Providers
A variety of reliable self-storage insurance providers can meet your needs and ensure your stored property is protected. The following guide provides an overview of five excellent storage insurance providers, including the coverage they provide and the average cost of their policies. Whichever of these providers you choose, you can rest assured that your property will be covered by reputable professionals.
Storage Protectors is dedicated to doing exactly what it sounds like: protecting the millions of dollars in goods in self-storage across the country. When you take out a policy with this company, you can expect inexpensive and flexible policies that cover a wide array of potential damages. As stated on Storage Protectors’ tenant insurance page, this provider is confident that its “coverage is the best self-storage tenant’s insurance coverage available.” Though it is important to note that Storage Protectors does not offer flood coverage, so if you live in an area likely to be affected by flooding and hurricane damage, this may not be the right provider for you.
SnapNsure offers self-storage and mobile storage insurance policies for as little as $5.99 a month. In addition to SnapNsure’s basic self-storage policy, you can add on expanded coverage for flood, rodent/pest, storm, and earthquake damage for as little as $1 a month. This additional coverage for such a low cost means SnapNsure customers may receive coverage for more types of damage than its competitors. The company is known for being an inexpensive but reputable insurance provider, perfect for those who need extended coverage at a lower price point. To learn more about its different policies, visit SnapNsure’s FAQ page.
Sage Insurance’s self-storage policies are another excellent option if you are interested in purchasing a self-storage policy directly from your storage facility. If your storage provider carries Sage Insurance, you may be able to purchase a Sage policy for a small monthly fee. Sage Insurance’s motto is “everyone wins when everyone’s protected.” To fulfill this mission, the company works to support both self-storage providers and clients to ensure comprehensive coverage for potential damages. In the event of a liability dispute, Sage Insurance can cover some of the gray areas to ensure all parties are protected. Additionally, the low deductible ensures that, in the event of an emergency, your out-of-pocket costs will remain minimal.
Minico is another company with insurance policies for both self-storage providers and tenants, reducing the liability of both parties in the event of serious damage. If you are a self-storage tenant, Minico’s tenant insurance can be purchased as an add-on to your monthly rental fee or purchased directly from Minico. Whichever way you choose to purchase, your policy will include a $0 deductible as well as coverage for rodent/vermin damage, vehicle, fire, water, and replacement costs. The direct purchase option covers up to $75,000 in damages to your stored property. All Minico policies are underwritten by an A+ carrier.
Unlike some of the other companies listed, Safestor specializes in storage unit insurance. With Safestor insurance, you can purchase a policy to protect your self-storage unit for as little as 20 cents a day. It has three tiers of self-storage coverage: the least expensive option offers $4,000 of coverage for $6/month; the next tier $10,000 of coverage for $18/month, andthe most comprehensive policy offers $15,000 of coverage for $24/month. These policies cover damages such as fire, hurricanes, burglaries, and vandalism. To learn more about these different levels of storage, visit Safestor’s page on self-storage insurance.