Does homeowners insurance cover items in storage?

If you own a home, having it insured is the best way to be financially protected against any disaster that may occur. Standard home insurance policies include a variety of coverage options that help to protect your home, all attached structures, such as your garage, and personal belongings inside. It also typically covers unattached structures on the property, such as a shed, and provides liability protection for injuries and damages sustained on your property.

Most home insurers include personal property coverage as standard in their policies, which means that items such as furniture, appliances, electronics, clothing, and jewelry are also protected from covered losses such as fires, theft, or severe weather events. That may not be the case if your personal belongings are stored somewhere other than your home, such as a self-storage facility. Your homeowners insurance policy may not always cover items stored off-site. You may need to purchase additional insurance to protect the belongings you keep in a separate storage unit.

What homeowners insurance covers

Personal property is a broad term that refers to possessions kept in your home and elsewhere. A standard home insurance policy will reimburse you for items that have been damaged or stolen up to the coverage limit. Your personal belongings may be covered even if you are traveling or staying in a hotel, depending on your insurer and the way your policy is written. This includes fire, severe weather, and theft damage.

Personal property typically covered by a homeowners insurance policy includes:

  • Furniture
  • Clothing
  • Kitchen appliances
  • Television and entertainment systems
  • Artwork
  • Jewelry
  • Bikes
  • Carpets and rugs
  • Lawn and gardening equipment
  • Trees and plants

Remember that some home insurance policies may exclude items under personal property coverage, such as computer equipment used in home-based businesses, from personal property coverage. If you work from home, you should ask your insurance agent if you require a business insurance policy. Similarly, if your appliances or electronic devices are damaged due to a power outage, they are unlikely to be covered by your standard home insurance policy. These types of items are typically covered by separate insurance.

Home insurance and items in storage

When you store your belongings elsewhere, your home insurance policy may provide the same coverage as it does for your belongings inside your home. The coverage limit, however, may be much lower than the standard personal property coverage, which is usually based on a percentage of the dwelling coverage amount. Increase your personal property coverage if the coverage provided is only a fraction of the value of the stored items. However, increasing your coverage will almost always result in an increase in the cost of your annual premium.

  • Off-premises coverage limits: Your belongings kept in a storage unit away from your property are covered by off-premises coverage. This is typically between $1,000 and $5,000, or 10% of the total personal property coverage limit. If the contents of your storage unit are more valuable, consider increasing the total coverage limit of your home insurance policy or purchasing separate storage insurance.
  • Theft-only limits: Personal property coverage comes with limits to the amount you are reimbursed in case of theft or burglary. Money, jewelry, watches, collectibles, watercraft, trampolines, and firearms typically have a coverage limit of $1,500 to $2,500, even if the item is worth more.
  • High-value item limits: The Insurance Information Institute (Triple-I) recommends that valuable possessions not be stored away from your home for safety reasons. High-value items such as family heirlooms, antiques, priceless art, and jewelry require additional protection, such as scheduled property coverage. This endorsement (or rider) is an optional addition to a home insurance policy that raises the limits on expensive items that are not covered by standard personal property coverage. Although the additional coverage may not have a deductible, your insurer will usually require you to have each listed item professionally appraised before applying for the endorsement.

Storage insurance

Self-storage facilities frequently provide insurance for items stored in their units to protect you in the event of theft or damage. Some facilities require insurance and may recommend their own policies or refer you to a third-party insurer with whom they are affiliated if you do not have adequate insurance to cover items in storage.

Storage insurance usually has a coverage limit, and premiums are calculated monthly. Purchasing insurance from a self-storage facility has its own set of parameters and exceptions, and the rates can be significantly higher than standard property coverage. The reimbursement is typically limited to the actual cash value of the damaged items rather than the replacement value. As with any insurance policy, your reimbursement is contingent on whether the loss or damage is covered or excluded by the policy.

What perils are typically covered

Exclusions

  • Flooding
  • Mildew and mold
  • Vermin
  • Earthquake
  • War

The Triple-I recommends that you consult with an insurance professional about storage coverage to determine the best coverage option and price.

Other ways to protect items in storage

Even the most secure storage facility is vulnerable to threats that can permanently harm your belongings. Insurance will only reimburse you for lost items, but some items are irreplaceable and require additional protection against perils.

Among the steps you can take to ensure the safety of your belongings in a self-storage unit are:

  • Choosing the Right Facility: Self-storage facilities abound in the United States, but not all of them adhere to high standards of customer protection. Before you use a storage unit, make sure the paperwork you sign absolves the facility of liability in the event of storage item loss or damage. You must conduct your own research before selecting a storage facility. Read about the company's background and history, as well as customer ratings, reviews, and complaints. Also, inquire about how the company handles damages and losses, as well as whether any complaints have been resolved.
  • Theft protection: It is critical to understand whether the facility has had any instances of theft or break-in, as well as what measures are in place to prevent them. Is there 24-hour surveillance? What steps must be taken to gain access to the facility? What types of locks are used on individual storage units, and are there any other forms of reinforcement for added security? These are some of the key questions to consider when selecting a self-storage facility.
  • Water and moisture protection: If your belongings are in a low storage unit, they are more vulnerable to flooding. Mold growth can also be caused by high humidity and moisture, but protection can be added by wrapping all items in plastic. Water damage can be reduced by using vapor barriers, desiccant packs, and a climate-controlled storage unit. If you live in an area that is warm all year and has high humidity, choose an air-conditioned self-storage facility.
  • Fire protection: Every self-storage facility should have fire suppression systems in place, as well as restrictions on storing flammable and combustible items. This should be one of your primary considerations when looking for a storage facility.
  • Keeping access codes private: Do not share your individual storage unit's access code with anyone you do not trust. Rather than writing it down, save it on your phone with password protection.
  • Keeping an inventory: Keep video or photographic evidence of the items stored in your unit at all times. This makes it difficult for storage facilities to deny responsibility in the event of stolen or missing items.

Placing your belongings in a storage facility is never completely risk-free, but in some cases, you have no choice. When it comes to insuring the contents of a self-storage unit, your homeowners policy will usually provide more coverage than the policy provided by the storage facility. Raising the limit of your dwelling coverage raises the limit of your personal property coverage, and you can purchase scheduled personal property coverage in the form of an endorsement for high-value items (or rider).

Remember that your homeowners insurance will only reimburse you for the value of the lost or damaged items, not prevent the peril from occurring. As a result, if you have irreplaceable possessions, it is best to keep them in a location where they are least vulnerable to fire, theft, or weather damage.