Storage insurance – do you need it?
Self-storage units are an option that a growing number of Americans uses. Either as a way to declutter their homes and workplaces or as an additional short-term or long-term storage area for items they don’t need. They may be out of sight, but, like all your property, you want to be sure that all things that you have in stock remain safe from theft, physical damage and the destructive effects of the environment. That’s where the storage insurance jumps in.
Homeowner or tenant insurance is a protection option, but not all policies are for property in an external vault. In many cases, it is necessary to purchase additional coverage. Or add it to your homeowner’s policy in order to extend insurance to property in storage facilities NJ. Also, the clauses that you come across usually range from $ 1,000 to $ 3,000. And there are about three years accrual periods that can make filing claims a lengthy and unpleasant process.
In addition, items in the vault are not covered in the same way as items in your home. Depending on the insurance company, items in the storage can only cover up to 10% of the amount of coverage in your homeowner’s policy. Therefore, if you have a lot of valuable things in the storage, it will simply not be enough to rely on your internal insurance to fully protect them.
For these and other reasons that we describe, it makes sense for you to protect your valuable items with a comprehensive storage insurance program.
Why do I need storage insurance?
According to the Self Storage Association, 10.8 million people in the US are renting a unit of self-preservation. This is equivalent to one out of every ten households. Objects in storage cover the whole range of goods. From household goods and personal belongings to automobiles, art objects, electronics, furniture, and antiques. So, in order to protect them, besides hiring antique movers, you also need to find insurance.
These are many varied and priced items that sit in lockers for storage and in containers, at sites owned by third-party storage companies that are not ready to be responsible for the safety of your goods. Or responsible for the damage caused by fires, burglaries, earthquakes, hurricanes or other serious events.
Nowadays, most fraudulent self-storage facilities will have some form of internal insurance coverage. And they are trying to impose it on you, at the point of sale. These plans are very expensive and, as a rule, do not provide you with the necessary protection.
You can bypass this condition by getting a policy from a reputable third-party self-storage service provider. If you can provide the warehouse manager with documentary evidence that your goods in the warehouse will be insured against various types of damage, you will also overcome a serious obstacle to the acquisition of much-needed storage space. In fact, they allow you to get coverage on the spot using your mobile device.
Available Insurance Types
Self-preservation insurance usually covers your personal property, which is in storage. And for which you pay rent in accordance with the terms of the lease agreement.
A good policy will insure against the causes of losses, such as fire, lightning, vandalism, burglary and water damage. These are basic principles, but if you go deep into your provider’s policy conditions, you may find that coverage is also available for hurricanes, tornadoes, wind, hail, flowing water, smoke, and earthquakes. As a rule, self-storage insurance policies do not cover damage from catastrophic losses, such as flood, earthquake, or a storm. Only a few of them provide all of these covers.
Special conditions for vehicles
This seems rather strange, since many self-storage units may be equivalent to an overgrown closet or garage. But insurance coverage for vehicles is usually not part of the package. Tenants who want to store their cars, motorcycles or ATVs for self-storage usually have to purchase insurance coverage for each of these items separately.
Other special items
Certain classes of items may be eligible for insurance for self-storage. But it can only cover a certain percentage of their true value. Others may not have coverage at all. Depending on the insurance provider and the terms of its policy, such items typically include jewelry, furs, fine art collections, antiques, property documents, stamps, or other valuable documents.
The answer depends on how these terms are defined in your insurance policy. And it may mean between whether you can claim these losses or not. Anti-theft coverage, as defined in this way, is usually not included in self-service insurance policies. Since they assume that you have to use due diligence to prevent theft of your property.
Storm storage insurance coverage
Since climate change increases the occurrence and severity of extreme weather events, classification systems intensify their activities to account for the year-round spread of tropical storms, hurricanes, typhoons, and other phenomena. Names and numbers are usually there to distinguish one weather pattern or event from another. So it is pretty important to get the right storage insurance. After all, you don’t want to lose your valuables just because nature got mad.
How much will the storage insurance cost?
It all depends on your chosen insurance provider. The self-storage insurance premiums from storage firms are as vary in coverage and cost as the objects themselves. What may seem affordable at first may have hidden points that in the long run can cost you dearly. And, as we have seen, homeowners ’and tenants’ insurance policies are notorious for their low prices. Therefore, you must be very careful when choosing storage insurance, since it should be a good way of cutting costs on storage. Check all the details and take the one that suits you best.
Featured image: Insurance by Nick Youngson licensed under CC BY-SA 3.0, under the property of Alpha Stock Images
The first image in text: Insurance by Nick Youngson licensed under CC BY-SA 3.0, under the property of Alpha Stock Images