Self-Storage Renters Insurance Misconceptions | Learn More!

Storing extra items in a storage unit is a viable option to free up needed space in your home and office. But have you ever considered how well-protected those storage facilities are? Many assume their unit insurance covers every loss, even natural calamities affecting storage places. Some even go beyond thinking that public storage facilities will handle any mishaps to their valuable belongings. However, contrary to this, it’s not always the case.

This article busts the most common myths about self-storage and explains why it’s crucial to have your insurance policy. By understanding rental storage insurance, you can ensure that your prized items are safe and sound, even when they’re tucked away.

Misconception 1: Homeowner’s or Renter’s Insurance Fully Covers Storage Units

There are 50,000 storage unit facilities in the US and over 10% of homeowners renting units for their belongings, yet, many renters mistakenly assume that their homeowner’s or renter’s insurance policy automatically covers items stored off-premises. Unfortunately, that’s not quite the case.

While these policies offer some coverage for off-site belongings, it’s always limited that provide a little bit of protection, leaving valuables vulnerable to loss or damage. For instance, the coverage amount is often a fraction of your total home insurance, with exclusions for specific events such as earthquakes, landslides, and floods.

That’s where additional coverage, like rental storage insurance, comes in. It’s designed specifically for storage units and covers the events most likely to happen there, like theft, fires, and even water damage. With this kind of targeted protection, you can rest easy knowing your belongings are covered, no matter what life throws.

Misconception 2: The Storage Facility’s Insurance Covers Personal Belongings

Another false belief is that the facility’s insurance will cover any damage if your personal belongings are stored in a rental storage unit. Unfortunately, this is not usually true, even in a locked and monitored storage facility. While storage facilities have insurance, their policies only cover the building itself and the equipment, not your belongings.

If a fire breaks out – the facility’s insurance covers fixing their building, but it won’t replace your sentimental assets.  That’s where your own storage insurance comes in.  It’s important for you to get your storage insurance.

Having your storage insurance means you have a safety net. Your insurance can compensate if your stored items are damaged or stolen. This is especially important because the value of your store can quickly add up, and losing those items could be financially damaging.

Misconception 3: Storage Insurance Is Unnecessarily Expensive

Many people think that storage insurance costs an arm and leg and is not a cost-effective alternative. However, there is another way around when you calculate the potential expenses of replacing items that could be stolen or damaged in the future. Storage insurance is an affordable option, especially when you think about the security and peace of mind it offers for your items.

The cost of storage insurance varies, but it’s based on several simple factors. These include: 

• The overall value of the items you’re storing
• The amount of coverage you want

For example, if your items are valuable, you may want to pay a bit more for insurance to cover their full value. However, in this case, the monthly premium for insurance is a small price to pay for the peace of mind it brings. This is true if something unexpected happens and you must replace your belongings without paying out of pocket.

Misconception 4: All Storage Insurance Policies Are the Same

Another common yet prevailing misconception among renters is that all storage insurance policies offer the same level of protection. This isn’t true! In reality, not all insurance is created equal. There are always significant differences in coverage limit and cost between policies, depending on what you have inside your storage unit. 

Here’s a breakdown of key factors to consider when looking for storage insurance:

Coverage Limits: 

Standard policies typically have limited coverage, which sets a maximum payout amount (often around 10% of your total policy) for damaged or stolen belongings, e.g., with a $10,000 personal property limit, only $1,000 worth of items would be covered. This shows the importance of choosing a policy with coverage that reflects the value of your stored items. 

Deductibles: 

This is the upfront amount you pay out of pocket before your insurance starts. The policies with lower deductibles generally have higher monthly premiums. It means you’re trading upfront costs for lower out-of-pocket expenses if you need to file a claim in the future.

Exclusions: 

These are specific situations or items not covered by the policy. Common exclusions might include certain types of water damage, flood, earthquake, or smoke damage. Choosing a policy that covers the most likely risks in your area is crucial to avoid financial losses in unexpected situations.  

Premiums:

More expensive policies offer broader coverage or lower deductibles. But remember, it’s important to find a balance between affordability and sufficient protection for your belongings. 

Compare different options to ensure you get the right and required insurance policy. Don’t go after the first policy you find! Always understand what each covers and carefully review the exclusions. By comparing multiple options, you can find the most suitable coverage for your needs without breaking the bank. 

Misconception 5: Storage Facilities Are Always Responsible for Damages

The next misunderstanding that was made to the list is that if anything bad happens to my items in a storage unit, the facility will cover the damage or loss. This is not the right side of the picture. Most self-storage facilities do not take the responsibility for your belongings unless it’s clearly stated in your rental agreement.

Here’s a list of things you need to know before renting your storage unit:

Facility Liability: 

The storage facility generally covers damage to the building, not to the renter’s items stored inside the unit. Suppose a fire damages the building; the facility’s insurance would help repair it, but it wouldn’t replace the burned items.

Your Responsibility: 

When storage facilities do not cover tenant belongings, it’s up to you to protect your own items. This is where rental storage insurance comes into play. Having your own policy in place means that if your belongings are stolen, damaged by water, or destroyed in a fire, you can file a claim with your insurance to cover the losses and handle the damages accordingly. 

Financial Protection: 

Without your own insurance, you could face significant financial losses if something happens to your stored items. However, with the right insurance policy, you can get compensation that helps replace or repair damaged items, ensuring you’re not out of pocket.

Read your rental agreement thoroughly, understand the pointers, and ask what your storage facility covers. Assume you are responsible for insuring your belongings, and consider purchasing rental storage insurance for peace of mind and financial protection. This way, you can avoid unexpected costs if something goes wrong.

Misconception 6: My Belongings Are Safe; I Don’t Need Insurance

Many folk assume that because a storage facility looks secure, their belongings are completely safe, and they don’t need any insurance. Contrary to the belief, most facilities can’t guarantee nothing bad will happen. Fires, floods, theft, and other unexpected events can still occur, and they can lead to serious losses.

It is not a by-law requirement, but here’s why having storage insurance is crucial:

Additional Safety Layer: 

Storage insurance acts like a financial safety net. If things go wrong, like your stored items are damaged in a fire or stolen, insurance compensates to mitigate risks associated with potential losses. This means you can replace or repair your items without paying out of pocket.

Enhanced Protection for Unexpected Events: 

No matter how good the security at a storage facility is, risks can never be completely avoided. Insurance ensures you’re prepared for these risks and protects you from the financial impact of losses that could be very costly.

Peace of Mind: 

Having storage insurance in place offers peace of mind. Reliable coverage allows you to focus on other aspects of life without worrying about what might happen to your belongings when you’re not around. Instead, you can confidently store your belongings, knowing they are financially protected.

Wrapping it up! 

Choosing storage protection insurance is a wise decision for anyone renting self-storage facilities. Numerous compelling reasons exist to prioritize storage insurance, including enhanced protection, an added safety layer, and peace of mind.

However, by clearing up common misunderstandings, you can better protect your belongings with appropriate storage or rental insurance. Carefully read the details and ensure that your coverage meets your needs. The step will provide peace of mind while your items are in storage and potentially save you from financial stress in case of unexpected events.

Protect your stored belongings with peace of mind. Sign up for our reliable storage insurance today and enjoy peace of mind knowing your items are safe!