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Your homeowners insurance doesn’t just protect your home — it may also offer some protection for your belongings stored in a storage unit. That coverage can provide peace of mind if you’re storing valuables off site. But it’s important to know that coverage may be limited and might not cover everything in your storage unit.
Key Points
• Homeowners insurance usually covers 10% of personal property for off-site storage.
• Mold, mildew, flood, and earthquake damage are generally not covered.
• Review policy for coverage limits and exclusions to understand what is protected.
• Document damage or theft with photos and police reports for claims.
• Consider additional coverage for high-value items stored off-site.
How Homeowners Insurance Covers Items in a Storage Unit
Most standard homeowners insurance policies cover a portion of your belongings while they are in a storage unit. The insurance coverage limit for your belongings in storage is usually a set percentage of your homeowners insurance policy’s personal property coverage limit.
Off-Premises Personal Property Coverage
It’s common for homeowners insurance policies to include off-premise personal property coverage, which can be applied to items in storage. However, you can usually only claim up to 10% of your personal property coverage amount.
For example, if you have $100,000 in personal property coverage for valuables inside your home, then your policy would generally cover up to $10,000 for belongings in your storage unit.
Protection Against Covered Perils
If your homeowners insurance covers items in a storage unit, there will usually be covered perils and uncovered perils. Insurance will likely cover damage done to items in a storage unit from theft, vandalism and weather events. However, if your possessions are damaged by mold or mildew while in a storage unit, your homeowners insurance may not cover the cost.
Coverage for Your Belongings vs. the Unit Itself
Homeowners insurance covers belongings stored in a storage unit but it doesn’t extend to the storage unit itself.
Recommended: Homeowners Insurance Terms
How do I File a Claim for Items in a Storage Unit?
Figuring out how to buy homeowners insurance is one important process for homeowners to understand. Learning how to file a claim is another. Here are some steps to keep in mind.
Immediate Steps to Take After Damage or Theft
If you notice belongings are destroyed or missing from your storage unit, alert the manager or security at the storage facility. They can secure the area and help protect it against further damage or theft.
If someone broke into your unit, report it to the police as soon as you can.
Documentation Needed for Your Claim
Your insurance company will probably require pictures of the damage or theft for your claim. You should also make a list of whatever was destroyed or stolen and provide their proof of value, if possible.
If your storage unit was broken into, you may also be asked to provide a screenshot of the security footage at the time of the break-in. The storage facility can provide that to you, along with paperwork and information needed to file a claim. Also get a copy of the police report, if you filed one.
Before submitting your claim, review your plan’s terms and conditions. A homeowners insurance guide can help you fully understand your policy.
The Claims Timeline and Process
Once the claim is submitted, your insurance company may assign an adjuster to work with you. Be sure to provide any documentation they request — it will help keep the process moving along. Note that claims can take anywhere from a few days to a few weeks to be processed, depending on their complexity.
What Is Not Covered in a Storage Unit?
Your homeowners insurance policy probably doesn’t cover everything in a storage unit. Here are some common exceptions.
Common Excluded Perils
Home insurance may exclude certain perils that can destroy whatever belongings you have in a storage unit. For instance, mold and mildew due to poor ventilation are often not covered under standard homeowners or renters insurance policies.
Other commonly excluded perils include flood or earthquake damage, damage from pests, and theft without forced entry.
Business Inventory or Property
Most homeowners insurance policies will not cover business inventory or equipment that is stored for sale or distribution within a storage unit. If you’re keeping items for a business in a storage unit, consider getting a separate business insurance policy or a business property endorsement.
High-Value Items Beyond Their Special Limits
If you are storing high-value items like art, jewelry, collectibles, or antiques in a unit, you may want to add scheduled personal property coverage to your homeowners insurance policy. This will cover the full value of your belongings without a deductible. However, note that you will likely need to get appraisals for any items you want insured.
Understanding Your Storage Unit Coverage Limits and Deductibles
Before filing a claim, it’s important to understand your storage unit coverage limits and deductibles.
The Off-Premises Coverage Sublimit
Most homeowners insurance policies have an off-premise coverage sublimit. This is the maximum amount the insurance company will pay for a specific type of loss. Off-premises coverage for valuables in a storage unit is usually limited to 10% of your personal property coverage.
Special Sublimits for Valuables
Oftentimes, homeowners insurance policies have special sublimits for certain high-value items. These sublimits cap the amount of money your insurance company will pay for a loss of those items, regardless of their actual value or your overall personal property coverage.
How Your Deductible Affects a Storage Unit Claim
A deductible is the amount that you pay towards a covered loss before your insurance company kicks in. Choosing a higher deductible may lower your premiums. However, you could end up paying more in upfront costs if you file a claim.
Recommended: Homeowners Insurance Costs Explained
The Takeaway
Does homeowners insurance cover storage units? Generally speaking, it does. Most policies will provide off-premise coverage for your personal property, which includes storage units. However, you may only be able to claim a percentage of your personal property coverage amount. Review your policy to make sure you have the right amount of protection in place.
If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.
FAQ
How much are my belongings in storage covered for?
Belongings in storage are usually covered for a percentage of your personal property coverage, often around 10%.
Do I need to buy the insurance offered by the storage facility?
It depends. If you already have homeowners or renters insurance, your policy may already provide off-premise coverage for your personal property. You could also purchase a separate storage unit insurance policy from an independent insurer. If neither of those options work for you, you may decide to buy insurance from the storage facility.
Are my items covered against all types of water damage in storage?
Items in storage units are probably not covered against all types of water damage. Water damage for events like mold, flooding, or water damage due to poor maintenance are often not covered under standard homeowners or renters insurance policies. If you want to protect yourself against all types of water damage, you can purchase additional coverage.
Does my home insurance deductible apply to a claim for items in storage?
Your homeowners insurance deductible usually applies to a claim for items in storage under off-premises personal property coverage.
What should I do before putting valuable items into storage?
Before putting your valuable items into a storage unit, you should clean and dry all items properly and thoroughly. Dirt can contribute to the breakdown of certain materials over time, and not properly cleaning and drying items can lead to mold or mildew. It’s also a good idea to carefully wrap delicate items and cover furniture.
photo credit: iStock/imaginima
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