Do you need insurance for self storage?
Matt Wallace
5 minutes
November 14, 2022
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When it comes to renting a self storage unit a lot of people don’t worry about insurance. After all, these units aim to guarantee the security of your belongings, with 24-hour CCTV monitoring service & secure buildings accessible only to authorised people.
However, even with all those factors, depending on what you want to store, insurance might be something you want to consider.
What is a self storage insurance?
A self storage insurance is a contract that will protect you financially against losses, damages or even theft of your belongings that will be stored in the storage unit. Which means that in exchange for a fee, a party agrees to guarantee another party compensation if something happens with your possessions.
How much does cost insurance for a storage unit?
According to Surewise, the cost of storage insurance can vary based on a number of factors, including unit size, location, and what items you store in it. Also, the policy of the insurance cans also affects the insurance cost. So, the more valuable your belongings are, the more expensive insurance will be. However, you can find insurance plans starts at around £13.49 per year.
Some people tend to value their items a little lower so that insurance is cheaper. However, it is recommended that you declare the real value of your belongings because if something goes wrong you don't want to lose your money. Another important thing to be aware of is the maximum sum insured, usually, insurance companies in the U.K cover £100,000 for a domestic policy and £20,000 for a business policy.
One thing to also be aware of is if you’re moving home or need temporary storage, your home insurance might already provide the coverage you need.
Why do I need insurance for a self storage unit?
The first thing to think about is that regardless of the period of time you plan to store your things in a self storage unit, you won't be able to take care of the things you leave there all the time. So, as safe as they seem to be, insurance is essential to protect your belongings from situations that are out of your control.
In addition, by taking out insurance for your things, you will have the guarantee that you will not lose your money and have great financial losses if something happens to your things.
Therefore, some self storage companies make insurance mandatory thing, so they might recommend their own policies or even direct you to a specific insurance company that they are affiliated with.
How can my stuff be damaged in storage?
There are many ways for your possessions to be damaged at a self-storage facility. The most common are:
- In areas more prone to wind and hail damage, natural disasters can be a concern, such as wind, hail, flood (water damage is a common cause of loss at self-storage facilities), lightning strikes, hurricanes or even a tornado.
- As secure as the unit may seem, theft can happen, regardless of the location of your self storage unit. Also, vandalism can occur.
- Fires can also occur, especially when there are many lightning storms.
- Worms or bugs can eat clothes, chew on yarn, and even ruin mattresses or furniture.
If you don't pack your items properly, you can expect breakage or deterioration if displacement or settling occurs, regardless of whether you have insurance or not. For this reason, always make sure to pack and protect all your belongings well.
How does storage insurance work in the UK?
The way insurance works can vary greatly depending on the company you choose. Generally, the insurance only covers your items when they are in the storage facilities, which means that during transit or even when you are loading or unloading your stuff, your belongings will not be covered. Also, usually, the home insurance can cover your items for up to six business days.
Most storage insurance policies only cover household or business goods. Cars, boats, motorbikes and caravans are usually not covered by self storage insurance. So make a list of what you want to storage and after that check what your insurance company will cover. This way you're not going to face any issues.
Also, usually, there are two types of storage insurance in the market, one for personal items and the other for business assets. Mostly, insurance for personal items is recommended for students, people that are moving to a smaller place or even for families that are doing a home move or even a home renovation.
Commercial self storage insurance is usually recommended for companies that have a lot of paperwork, products or even unused furniture. Usually, insurance companies do special payment plans based on what you are storing.
Does my home insurance cover my contents in storage?
This will depend on your insurance terms. Usually, home insurance can cover your possessions when they are not kept in your home, but only for a short period of time, this is done to secure your belongings when you are moving to another house, for example.
However, if you pretend to keep your belongings in a self storage unit for a long period of time, your stuff will not be covered by your home insurance. In this case, you will likely have to contact insurance because they may be able to offer you some options to stretch the limits.
This will also typically add to the cost of your home insurance. In some cases the price can increase by more than 10%, so taking out separate insurance just for your possessions in the self storage unit will be a cheaper and more comfortable option for you.
If you plan to use home insurance to protect your belongings in the storage unit, be sure to read the policy document carefully – that way you'll know if your belongings are really safe and avoid problems in the future.
What does storage insurance cover?
The insurance for self storage units usually covers flood/water damage, vandalism or malicious acts, collision, lightning, explosions, fire damage, theft, insect, moth or vermin damage and smoke damage.
However, usually, insurance companies do not cover any contents being stored within wooden crates cause they offer more risks to stored items. And for insurance coverage, the location must be a purpose-built storage facility with CCTV, fire alarms, and secure access.
Another thing to be aware of, some self storage insurers may charge extra to protect your belongings while they are transported to the storage unit. Therefore, if you want to guarantee the maximum protection of your belongings, it is important to be aware of these values and also check if the company offers this type of coverage.
Where can I get storage insurance in the UK?
There is an extensive range of insurance companies for Self Storage spaces in the UK. But what we advise you to do is check with these companies what types of items they cover, what amount they cover per store unit and even the location that the insurance covers.
Some of the self storage insurances companies in the UK are:
Don't forget, before choosing an insurance company for your belongings stored in a self storage unit, check with the company that you chose to store your possessions if they offer their insurance and if they accept that you insure your belongings with another company.
