When it comes to storing within a self storage unit, it is important to consider storage insurance. Most home insurance does not carry over to items that are being stored within a self storage facility. Taking out storage insurance will give you that extra peace of mind that your belongings are covered in case anything untoward does happen to them.
Within this article, we will cover what storage insurance actually covers, why it is an essential part of self storage and how to find the right policy.
The Increasing Need for Storage Insurance
The pandemic brought with it a need for many people to no longer put things off which has caused a rise in more people downsizing or choosing to travel the world over a period of months with their entire families.
This is increasing the need for self storage which is, in turn, increasing the need for storage insurance. Although all professional storage facilities will have advanced security systems in place, storage insurance adds an extra layer of security for any unplanned events which can happen when leaving items unattended for prolonged periods.
Unpacking the Basics of Storage Insurance
Before you sign on the dotted line of any storage insurance policy, it is important that you understand the fundamentals so you can make an informed decision. Here we will talk you through the basics of storage insurance.
What Exactly is Storage Insurance?
Storage insurance is exactly what it says on the tin – it is a type of insurance which is designed to cover items stored away from your home or business premises, within a dedicated storage unit.
It is different from home insurance as it is specifically designed to cover items being stored with a storage unit. Most home insurance does not cover items being stored away from the home so it is crucial in making sure your belongings remain covered.
What Does Storage Insurance Cover?
Typically, storage insurance covers events such as:
- Water leakage
- Moth, insect or vermin damage
What is actually covered will be explained with the insurance policy paperwork but this is a typical example of the types of things covered.
There are some limits to coverage, particularly when it comes to that should not be placed with self storage. This includes items such as live animals, firearms, anything flammable or combustible and illegal items.
The Necessity of Storage Insurance
All top quality, professional storage facilities will have state-of-the-art security in place but this cannot always prevent some unplanned events. No matter how much security is in place, if there is a flood or a fire, your belongings will be damaged.
Storage insurance allows you an extra level of security as you know your items are covered and you will be reimbursed for the damages. It is a necessary part of using a self storage facility.
Navigating the Ins and Outs of Storage Insurance Policies
When it comes to finding and securing a storage insurance policy, it is important to first understand the policy details. Not all storage insurance policies are the same and you need to know the ins and outs before you agree to anything.
Understanding Policy Limits
It is important to know your policy’s coverage limit and how it relates to the actual value of your belongings.
It is also important to see whether you will receive actual cash value or replacement cost value.
Replacement cost value (RCV) will mean that you will get the amount that it cost to replace the item, no matter how long you have had said item. For example, if you store a television and your unit is flooded, you will receive the full cost of buying a new television, no matter the age of the television which was damaged.
Actual cost value (ACV) means that you get the price of what it will take to replace the item minus depreciation. So, if your television is damaged whilst in your unit, the amount you get will be dependent on how old your television was and what condition it was in prior to getting damaged. You will not get the full amount to simply replace your television.
It is important that you know which one is on offer when looking at storage insurance.
Knowing the Exclusions
What is excluded from the policy will change from policy to policy but it can include things such as certain natural disasters and vermin damage.
It is extremely important that you thoroughly read through your policy before signing. If there is anything you don’t understand or aren’t sure about, speak to your storage insurance provider. There are no stupid questions.
Comparing Quotes for the Best Deal
Shopping around and looking at different storage insurance quotes will allow you to find the best deal. You can look on websites such Compare the Market, who will do all the comparing for you.
You could also speak with independent insurance agents to gain a broader perspective on the storage insurance options available. And, of course, you could also speak with the storage facility who are providing you with storage. Chances are they will have their own storage insurance policy available for you.
What is the Value of storage insurance cover needed?
The amount of cover you choose should, as accurately as possible, reflect the full replacement value of the items in your unit. When deciding on cover to go for it is important to remember that in the event of a claim the insurance company may reduce your claim for under-insurance if you do not declare the full replacement value.
Insured value: Goods in storage are insured for £2,000, however their full replacement value is £8,000. You have only insured your belongings for 20% of their true value.
Incident: A liquid has leaked into your unit from the one above, damaging your bed. To replace your bed would cost £1,000, so you make a claim for that amount.
Claim: The insurance underwriters inspect your unit and determine that you have insured for only 20% of the true replacement value of your goods.
Pay-out: In this scenario you would only be compensated for 20% of the £1,000 you have claimed for, which would be £200. Consider the £100 policy excess and the final pay-out would be just £100.
We strongly advise against under-insuring your goods! If you have any questions about insurance, please speak with our storage experts at your local store.
Replacement value means the cost to purchase your items from new. Your cover will be based on replacement value, so you will need to declare the new item value.
Securing Peace of Mind: The Value of Storage Insurance
Storage insurance is important as it will add that extra layer of protection to the belongings which you store within a unit. This will give you peace of mind that no matter what happens, your belongings will remain covered as many home insurance policies do not cover items which are stored away from the home.
It is important that you assess your insurance needs carefully and look at a variety of different options before signing any agreement.
If you need any help with your storage insurance, our teams are all on hand with advice and a helping hand. Head to our website to find your local store.