Claim Process for Damaged Items in Storage

Self-storage facilities provide a convenient solution for individuals and businesses to store their belongings and inventory. However, the risk of loss or damage to stored items is a reality that cannot be overlooked.

Therefore, understanding the claim process for damaged items in storage and the importance of storage unit insurance is crucial for mitigating potential financial losses and ensuring peace of mind.

In this article, we show you your storage insurance options and how to make a claim process for damaged items in storage so you can get back on track as quickly as possible. 

Storage Unit Insurance – The Basics

There are different types of storage available to you, so understanding the different types of storage insurance available can help you make the best decisions. There are several options to consider:

Types of Storage Unit Insurance

Self-Storage Insurance: Many storage facilities offer in-house insurance policies you can purchase to protect you financially should the worst happen.

Existing Home or Renter’s Insurance: Your existing homeowner’s or renter’s insurance policy may provide some coverage for items stored off-premises, including in a storage unit. For example, Suncorp home and contents insurance has a policy to cover items in transit or storage. Should your belongings get damaged by fire or flood, or a vehicle carrying the contents is stolen or damaged in an accident, Suncorp will reimburse you. 

Coverage Options and Limitations

Policies provided by storage unit insurance can vary significantly. Standard policies often cover theft, fire, vandalism, and natural disasters. However, they usually exclude coverage for water damage, mould, mildew, pest infestations, and damage caused by the storage facility.

Always review the policy details carefully to understand what is and isn’t covered. Some storage facilities may offer additional coverage options, such as protection for high-value items like jewellery or artwork.

Check Your Policy

Before renting a storage unit, verify the coverage provided by the storage facility’s insurance policy or your homeowner’s or renter’s insurance. This will help you determine if you need to purchase additional coverage to protect your stored belongings.

Storing valuable or irreplaceable items may require specialised insurance or a scheduled personal property endorsement to ensure you can make a claim.

Making a Claim

When filing a claim for damaged items in storage, there is always a specific process you must follow.

Initial Assessment of the Damage

The first step in the claim process is to thoroughly inspect the storage unit and assess the extent of the damage. You may be required to provide photographic evidence, so take photos of items you place in storage. Create a detailed inventory of the affected items, and document their condition before and after the incident.

Gather Documentation

Keep any receipts, appraisals, or other documentation that can help establish the value of the items.

Notifying the Storage Unit Company and Insurance Provider

Once you have assessed the damage, the next step is to notify the storage unit company and the insurance provider. Do this step as soon as possible, as many insurance policies have time limits for filing a claim.

Filing the Claim

When you have all your documentation organised, the next step is to file the claim with the insurance provider. This may involve completing a claim form, submitting the inventory, and providing any other supporting evidence required by the insurance company.

Communication and Follow-up with the Insurance Provider

Throughout the claims process, it is essential to maintain open communication with the insurance provider. This may involve answering additional questions, providing further documentation, or following up on the claim’s status.

Resolution of the Claim and Reimbursement Process

Once the insurance provider has reviewed the claim and supporting documentation, they will decide on the coverage and the value of your reimbursement. This stage may involve further negotiation or additional communication to ensure a fair and satisfactory resolution.

The best way to get everything you are owed from an insurance claim is to stay organised, keep detailed records, and communicate effectively with the insurance provider.

Do You Need Storage Insurance?

The short answer is yes; storage insurance is highly recommended when renting a storage unit. There are several compelling reasons why you should consider getting storage insurance coverage:

Protection Against Theft, Damage, and Natural Disasters: While storage units are generally secure, they are not immune to theft, fire, floods, or other natural disasters that can damage or destroy your stored belongings. 

Coverage Beyond Homeowners/Renters Insurance: Many assume their existing homeowners’ or renters’ insurance policies will cover items in storage. However, these policies often have limited coverage for off-premises belongings, with lower limits and higher deductibles. Specialised storage insurance can provide more comprehensive protection.

Storage Facility Requirements: Many storage facilities now require tenants to have storage insurance coverage. While in-house insurance provided by the storage facility is convenient, make sure it suits your needs before committing to a policy.  

Peace of Mind: Knowing you are protected financially can provide valuable peace of mind. The relatively low cost of storage insurance is often well worth the investment to safeguard your belongings.

Specialised Coverage for High-Value Items: If you’re storing valuable items like artwork, antiques, or collectibles, standard storage insurance may not provide adequate coverage. Specialised policies or endorsements can ensure these items are fully protected.

While the specific coverage needs will vary depending on the items you’re storing, the risks in your area, and your existing insurance policies, storage insurance is generally considered a wise investment to protect your belongings. Understanding your options and finding the right coverage can help give you the peace of mind that your stored items are safe and secure.