Does Renters Insurance Cover Property in Self-Storage Units?

Renters insurance will generally cover personal items kept in a self-storage unit away from your main dwelling, but at a lower limit.

If you are concerned about adequate insurance for belongings in a storage unit, you have a few options. You could increase your renters insurance coverage, purchase an additional policy from your insurer or buy a policy from the storage unit company. What you choose will likely depend on what you're insuring and for how long you need coverage. We'll discuss what will be the best option for you and your items.

What does renters insurance cover in storage units?

Anything your renters policy normally covers would also be covered in your storage unit usually. Belongings such as clothing, furniture, electronics and appliances will all be covered should a fire, tornado or water leak damage them. Even if a robber steals your things from the unit, your renters policy will still cover you. You are out of luck, however, if pests, a flood or an earthquake destroys your stored items.

There are a couple of exceptions and specifications to note. Coverage for items in a self-storage unit is limited to a small percentage of your policy maximum. Your insurer will refuse claim payment if the object is not in your home or your storage unit because it is being repaired or refurbished. You also won't be covered for items that you usually store in another residence that your renters insurance does not cover.

There may be some restrictions as to what you're allowed to store in the unit also. Most storage facilities do not let you store firearms, which are covered under renters policies.

How much does renters insurance cover for self-storage units?

Renters insurance will cover items in a self-storage unit up to a percentage of your policy's limits, which is usually 10%. If you have a policy that covers your personal property up to a maximum of $50,000, you would be insured up to $5,000 for the items in your storage unit. Coverage limits afforded to certain items would still apply in the storage unit: Any electronics, jewelry or musical instruments will be capped at their normal limits.

If you got an endorsement for any of those belongings — also known as "scheduling an item"— you need to read the policy language carefully. You should understand how much coverage you will receive for those items while in storage, versus how much is covered while they're in your home.

What if you are moving to a new apartment?

Your renters insurance will cover items stored in the unit even if you are moving to a new apartment. Just be sure to change the address on your policy to the new apartment within 30 days. Your policy will cover both rental homes for a maximum of 30 days, so it is your responsibility to contact your insurer within a month of the move and have the new policy reflect the new apartment.

Should you buy self-storage insurance?

A storage company insurance policy usually provides the exact same protection as your renters policy. The difference is that it may have a larger amount of coverage, while your renters policy is restricted by a cap, which you can assume will be 10%. A storage unit insurance policy can grant you thousands in extra coverage.

SafeStor is one company that sells storage unit policies. It offers a maximum of $15,000 worth of coverage — three times the amount you'd get with a $50,000 renters insurance policy. You can combine that limit with the $5,000 from your renters policy, giving you $20,000 in coverage.

State Farm offers a separate policy called a personal articles policy that gives you additional coverage for your belongings outside of your normal renters policy. If your insurer is State Farm, this can be a highly convenient option.

Another option is to increase the limits on your renters policy. You can even do that for only a few months to get extra coverage temporarily. If you have a $20,000 limit and increase it to $50,000, you would give yourself an extra $3,000 of coverage for your storage unit. Of course, increasing your renters policy will cost more. If the additional coverage would cost less than a premium on a new policy (either with the storage company or your insurer), then it would be your best option.

How much do self-storage insurance policies cost?

These policies are generally pretty cheap, but it all depends on how much coverage you want. The cost of most renters insurance policies is usually less than $30 a month. Getting coverage through SafeStor for more than $10,000 would essentially cost the same as having another renters policy.