Self-Storage Facilities: Insurance and Safety Tips for Storing your Stuff

If you are planning to rent a storage unit for your belongings, take the following steps:

• Ask your insurance professional about off-premises coverage.  Some standard homeowners and renters insurance policies include coverage for personal possessions that are kept off-premises, including a storage facility. Off-premises coverage includes theft and damage from fires, tornadoes, and other perils listed in the policy. However, it does not cover for damage caused by flooding, earthquakes, mold and mildew, vermin, or poor maintenance. And check the coverage limits, as these vary by company.
• Find out what type of financial protection the storage facility provides. Most facilities reimburse based on the square footage of the unit. Check the coverage limits and whether they are provided at an actual cash value or replacement cost basis. Most storage facilities will also offer a variety of supplemental insurance packages; ask your insurance professional if it would make sense to buy this additional coverage.
• Consider special insurance or storage for expensive items.  If you intend to store valuable property, such as art, antiques, jewelry, or furs, there may be dollar restrictions for theft under your standard homeowners or renters insurance policy. Ask your insurance professional about adding a floater or endorsement to your policy to cover these items fully. Specialized storage facilities are also available for these items, as they often need to be kept at specific temperature and humidity levels. Small items such as jewelry will cost less to insure if they are kept in a bank-safe deposit box. Remember that the bank does not insure the contents of a safe deposit box.
• Create an inventory of items to be kept off-premises in storage.  Add the items you’re moving to the storage unit to your home inventory so that you can keep track of your belongings and make sure you have the right amount of insurance to protect them. Use this helpful Home Inventory guide to make creating your inventory as easy as possible.

The Insurance Information Institute suggests the following tips for choosing a safe storage company:

• Look for a secure facility.  Fencing that secures the entire property and access control are the minimum security measures a storage business should offer. Ideally, the storage building should have onsite security features such as 24-hour video surveillance cameras and coded security pads. Also, learn about the facility’s procedures in cases such as a fire or flood.
• Look for a unit with climate control.  Very high or low temperatures, as well as dampness, can quickly cause damage to appliances and furniture. And make sure that rising ground water from snow or rain cannot penetrate the storage.
• Consider a storage company that offers insurance.  If your renters or homeowners insurance does not provide off-premises coverage, you may want to opt for one of the company’s coverage options. Remember that any facility should also have its own insurance to cover damages to the property or injuries that occur on the premises.
• Check that the facility is clean and well-maintained. If a storage facility is not routinely and thoroughly cleaned, there is a good possibility no one is monitoring for bugs and rodent infestations. Verify that the facility has a permanent, reliable pest extermination contract before you trust them with your belongings.

Source:  Insurance Information Institute