Does Renters Insurance Cover Storage Units?

Does Renters Insurance Cover Storage Units?

The items you keep in a storage unit are usually covered under your renters insurance policy, but the coverage may be limited under the policy's terms.

Here's how it works: Personal property such as furniture, electronics, clothing and kitchen items are covered against theft or damage under your renters insurance policy. If your personal property is destroyed in a fire, for example, your renters insurance will reimburse you up to the limit of your personal property coverage.

Personal property stored off premises is generally covered as well, but you may be limited to a percentage of your regular coverage, typically 10%. If you're normally covered for $50,000 in personal property damage, you might only have $5,000 in coverage for items kept in a storage unit.

Check your policy to make sure. It should show the amount of personal property coverage you have as well as the coverage limits that apply to items kept in a separate storage facility.

Learn more: What Does Renters Insurance Cover?

What Perils Are Covered?

In addition to limiting the amount of coverage, renters insurance policies also specify the types of damage that are covered under your policy. Here's a list of commonly covered perils:

• Fire
• Theft
• Vandalism
• Lightning
• Windstorms or hail
• Hail
• Damage from vehicles or aircraft

Typically, damage from earthquakes, floods, sewer backups or lack of maintenance aren't covered by renters or homeowners insurance. Again, check your policy for details on where your coverage begins and ends.

When to Get Additional Coverage

Because the coverage you get from renters insurance is limited, you may want additional coverage for your items in storage. Talk to your insurance provider if you want to increase coverage for either of the following reasons:

• The value of your items is greater than your coverage limit. If 10% of your current personal property limit doesn't seem adequate, you may want to increase your personal property coverage to bring it in line.
• Some items aren't covered under your renters policy. Renters insurance commonly excludes certain valuables, such as jewelry, antiques and musical instruments. If you want to make sure these items are covered, ask about scheduled personal property coverage.

In either case, make sure you clarify what the coverage limits are when your items are stored off premises. If your renters insurance provider doesn't offer enough coverage, you may be able to purchase self-storage insurance through your storage company. Read through the contract carefully, so you're clear on which perils are covered—and which aren't—as well as what your coverage limits will be.

Learn more: How to Get Renters Insurance

Tips for Protecting Your Items in Storage

While there's no surefire way to eliminate risk, taking extra care when putting your items into storage may help reduce your chances of having to file an insurance claim. Here are a few tips to follow:

• Make a full inventory. Having a complete record of what goes into your storage unit can help you keep track of items and record their condition in case you need to file a claim later. Make a list of all the items you're putting into storage, along with receipts or estimates of their replacement value, and take photos or video as backup.
• Add up the value of your belongings. While you're making an inventory, total up the value of the items you're putting into storage. This can help you gauge how much insurance coverage you need.
• Store your things carefully. Consider a climate-controlled unit if you have anything that may be damaged by extreme temperatures, such as fine art or wine. Wrap fragile items, pack them with care and make sure they don't wind up stacked underneath heavy items.
• Choose a well-maintained storage unit. Be picky. Ideally, you want a clean, secure unit with no visible evidence of problems, such as peeling paint, water-stained floors or smoke damage.

The Bottom Line

Renters insurance does cover the items you put in storage, but you'll need to decide whether your existing coverage is up to the job. If you need more, ask your insurance company about increasing your personal property coverage limit, or adding a rider to cover valuables like jewelry or collectibles. Self-storage insurance from the storage company is another option for boosting your coverage; just make sure you understand the terms, limits and deductible.