If you are getting ready to move your belongings into a self storage facility, you may find yourself wondering whether you need to purchase a self storage insurance policy or if your home insurance policy covers items placed in self storage. Many home insurance and renters policies extend out to cover items that are placed inside of storage. But there are differences between a straight self storage insurance policy and home insurance policies that cover your items in storage. Here are a few of those differences.
What Events Are Covered
One of the factors that you need to consider when deciding between self storage insurance the home insurance policies is what events are covered. Both policies will likely cover your belongings in the event of fire, theft or water leaks in the unit. But natural disasters, such as earthquakes, hurricanes and flooding are different. If a natural disaster is excluded, or not covered, under your home insurance policy, that preclusion extends to items placed in storage. Typically natural disasters are covered by self storage insurance, which may be better for you if you live in an area prone to these natural disasters. Also mold and pests are not covered by home insurance policies, but usually are under self storage insurance. Always read through both policies to learn about what is excluded.
How Much Coverage You Have
Another key factor to keep in mind when you are deciding between a self storage insurance policy and a home insurance policy is how much coverage the policy actually provides. Many people do not realize that if your homeowners insurance policy does cover items in storage, that coverage is less than the amount of your standard coverage. Typically, the amount is placed at 10 percent. So, if your home insurance policy offers you $250,000 of coverage, you may only be covered for $25,000 for items in a storage unit. When you buy a policy for a self storage unit, the amount you see is the amount you can claim.
What Items Are Covered
The last factor to consider when you are picking between self storage insurance or home insurance is what items are covered. If you have purchased add-on coverage through your home insurance policy for things like jewelry or art, these policies likely extend to covering the item while in storage. Most self storage policies excluded expensive items like jewelry and fine art work.
For some people, investing in a separate self storage insurance policy is the better choice when they are placing their items in storage. For other people, using the coverage provided by their home insurance policy is the better option. Learning the differences between the two policy types will help you determine which the better option for you and your belongings is.