Self storage facilities have become increasingly popular over the years, as people look for a convenient way to store their belongings. However, while renting a storage unit can be an effective solution for storing items, it’s essential to consider the potential risks and liabilities involved. This is where self storage insurance comes into play.
What is self storage insurance?
In summary, it’s an insurance policy that’s designed to protect your personal belongings from damage, theft, or loss while they are in storage.
Why is self storage insurance important?
Self storage insurance is important for several reasons:
- It protects your personal belongings from damage, theft, or loss while they are in storage. Storage units can be susceptible to natural disasters, such as fires and floods, as well as theft, vandalism, and rodent infestation. While such instances are rare, insurance provides coverage if any of these situations occur, giving you total peace of mind knowing that your belongings are protected.
- Self storage insurance provides additional coverage beyond what may be covered by traditional home insurance. While some home insurance policies extend coverage to self storage, it is often limited and may not cover high-value items, such as jewellery, antiques, or electronics. Self storage insurance can provide additional coverage for these items and give you the assurance that your valuables are fully protected.
- Self storage insurance is affordable, with policies starting at just a few pounds per month. The cost of insurance is a small price to pay compared to the potential costs of repairing or replacing damaged or stolen items. Furthermore, some storage facilities may require tenants to have self storage insurance before renting a unit.
Do you need insurance for self storage?
Most storage facilities will require tenants to have self storage insurance at the time of renting a unit. While this may seem like an additional cost, it’s worth noting that the storage facility may have strict policies in place to ensure the safety and security of your belongings. Particularly if the facility is a member of the Self Storage Association UK, as insurance cover is mandatory within their best practice frameworks to safeguard customer possessions.
How much does insurance cost?
Much like with home insurance, the cost can vary depending on a number of factors, such as the facility location, room size, and accessibility, as well as the nature and values of goods going into storage. These variables aside, insurance coverage is very cost-effective and flexible. For example, prices at blue self storage start from as little as 13p per day and run on monthly rolling contracts.
What does it mean to be underinsured?
In order to be sufficiently insured, you must declare the correct maximum value of the goods you’ll be storing in your unit on a ‘new for old’ basis. By ‘new for old’ we mean replacing the goods with new items and not their second-hand value. It’s therefore crucial to provide the insurer with the correct value to ensure you are not under-insured which would lead to any claim being proportionally reduced. As an example, if you declare £5,000, but your goods are found to be worth £10,000, you would be underinsured by 50% and would only receive 50% of any claim (in this instance a maximum of £2,500).
Self storage insurance is essential for anyone renting a storage unit. It provides protection for your personal belongings, offers peace of mind, and is often required by storage facilities. While the cost of self storage insurance may seem like an unnecessary expense, it’s a small price to pay for the added security and peace of mind.
We hope our guide has answered everything you wanted to know about self storage insurance. If you’d like to know more, get in touch – we’re a friendly bunch!
New to self storage? Explore our #StorageMadeSimple series with our experts:
- What is self storage?
- How to choose the right size storage unit when you’re moving house
- Why do people use self storage?