Coverage Limits: What Does Storage Insurance Really Cover?

When planning self-storage, many people assume that the responsibility lies with the storage provider. However, the onus is always on the owner of the goods to ensure they are adequately covered against loss or damages.

So, what does self storage insurance cover? Do you need to open a new policy, or will your home and contents cover it? This article will clear up any confusion about self storage insurance, so you don’t suffer financially should the worst happen. 

What is Storage Insurance?

Homeowners’ or renters’ insurance sometimes provides coverage for off-premises belongings. However, this coverage is often limited when it comes to using storage that is some distance away from the primary residence.

Therefore, storage unit insurance can play a critical role in financial protection when storing items during a renovation or sorting through an inheritance. 

As with all insurance policies, reimbursement is dependent on the type of damage your insurance policy covers. Typically, the policy will cover fire, lightning, wind, smoke, vandalism, theft and crushing damage, such as from a falling object. 

Always check your policy carefully, as some providers will not include scenarios like water damage, earthquakes, or mould. 

Coverage Limits

The level of insurance coverage can be limited by several different factors, including: 

Value of Stored Items: The value of your stored items will have a significant correlation with the cost of your insurance policy. Higher value items typically demand additional coverage to ensure you have adequate coverage should they need to be replaced or repaired. 

Deductibles and Excesses: Excesses and deductibles will only come into effect when you make a claim. While both deductible and excess involve the policyholder contributing to the cost of a claim, they differ in terms of timing, application, and calculation, based on the specific insurance policy and its terms.

Risks: Different insurance policies cover varying types of risks, such as theft, vandalism, fire, natural disasters, and other hazards.

Additional Coverage: Depending on what you are placing in storage, you may require additional coverage that is not available with a standard policy. 

Storage Insurance Inclusions

Storage insurance is designed to cover belongings kept away from home, usually in a dedicated storage facility. Here’s what you can expect to be covered for:

Theft: Loss or damage due to theft is typically covered in most storage insurance policies. 

Fire and Smoke Damage: You are protected against damage caused by fire, heat, ash, soot, and smoke damage that results directly from a fire within the storage facility. 

Water Damage: Even in flood free areas, your belongings can still sustain water damage from burst pipes, and storms. 

Vandalism and Malicious Acts: While every good storage facility will have robust security measures, it’s still a good idea to protect yourself against vandalism and malicious acts. 

Natural Disasters: Some policies may include cover for damage sustained from lightning, falling trees or poles, earthquakes, and other natural disasters. 

Accidental Damage: There is always a risk that stored items can succumb to accidental damage such as spillage, breakage, or crushing.

Types of Belongings You can Insure

Not all items in storage can be insured. Depending on your policy, some of the following items may not be covered:

• Vehicles, boats, or leisure craft
• Flammable goods
• Some valuable items such as heirloom jewellery, antiques, or collectibles
• Perishable foods
• Items over a certain value, with limits specified in the policy
• Mould and mildew damage caused by poor packing or ventilation
• Damage from improper packing or neglect

Items that are typically covered in storage insurance include:

Furniture and Household Items: Furniture, electronic equipment, appliances, soft furnishing, and other household items 

Valuables: Some policies can provide coverage for valuable items up to a specified limit.

Sports and Outdoor Equipment: Sports equipment will usually be covered.

Optional Cover: Insurance policies can be adjusted to include optional coverage for specific risks, such as for high-value jewellery, vermin, fungus, and structural damage to the storage facility that may have an impact on your belongings.

Storage Unit Types You can Insure

Storage insurance can be bought for a wide range of storage types, including:

Outdoor Metal Shipping-Style Containers: These containers are growing in popularity due to their versatility for storing on-premises or at a storage facility. They are weatherproof, secure and can be used to store everything from documents to vehicles. 

Indoor Units: A more traditional style of storage, indoor storage units are used to store all manner of items and can also include climate-control for storing vulnerable items such as antiques or wine. 

Lockers: A storage locker is a smaller unit for individuals that can often be found alongside large units at an indoor storage facility. 

Warehouse Crates: Some storage insurance policies can extend to covering warehouse crates, which are large durable containers, often made from timber, that are used to transport and store items. 

1800 We Store It Insurance Recommendation

While 1800 We Store It does not offer storage insurance directly, we know how important the extra peace of mind can be for our customers. This is why we only recommend the best insurance provider in Melbourne “CARTS Removal Insurance.” 

They offer instant quotes online, with policies available 24/7 that offer protection against loss or damage. 

When you are ready to choose the best storage in Melbourne, be sure to ask about insurance options. We can help you arrange your policy and make storage even more convenient for you.