How Renters Insurance Applies to Storage Units
A renters insurance policy will protect your personal property regardless of whether it's in your home or in a storage unit. Just take note that property kept in a storage unit is only covered up to 10% of your chosen limit for personal property.
That means that if you have all of your personal property in a storage unit and a covered peril destroys the facility, you're only covered up to 10% of what would have been covered if you'd kept all of your items in your home. This limit doesn't apply if the reason you're storing your items is because your home is unfit to live in, or if your home is being repaired, renovated, or rebuilt.
A storage facility can't require you to purchase insurance for the unit itself. However, they may require you to insure the stored items. If you deem it necessary, you can usually purchase additional insurance from the storage facility or your insurance company.
To determine if higher limits are necessary for your storage unit, take a look at your renters insurance policy. Your personal property will be covered up to a defined limit. Divide that limit by ten and compare the limit against the value of your property. For example:
- Your personal property coverage is $30,000.
- Your storage unit would be covered for 10% of that, or $3,000.
- You have the items you want to store appraised at $4,500.
- If your collection is damaged or destroyed, you could have a coverage gap of up to $1,500.
Note that the same exclusions that apply to your apartment also apply to your storage unit. So, while you might be covered for fire, theft, and smoke damage, you won't be covered for flood, earthquake, or pest damage. You'll also have separate sublimits on valuable property like jewelry, furs, silverware, and money.