What is storage unit insurance?

Key takeaways

• Storage unit insurance is designed to safeguard belongings stored away from home or business premises, covering risks like theft, fire, and water damage.

• Standard home insurance may not cover items stored off-site

• When choosing a self-storage facility, think about location, security, unit sizes, and delve into the storage provider’s customer reviews for added peace of mind

What is storage insurance?

Storage insurance is a specialist insurance product that protects belongings stored away from home. Essentially, it acts as a safety net against potential loss or damage while your possessions are held in a self storage facility.

It can help fill in the gaps left by the storage provider’s own insurance or standard home insurance policies that may not offer full coverage for items stored off-site or in locations that are regularly left unsupervised.

📣 Did you know? There’s now almost 6 million meters squared of storage space in the UK, according to the Self Storage Association.

Do I need storage insurance?

Maybe. First of all, decide if you really do need to use a storage facility at all because the costs can really ramp up, especially if you use one for a long time.

Then think about what you need to store. Are they valuable - if so, what are they worth? Or are your items more sentimental? Would they be difficult or expensive to replace if you had to find the money yourself?

Check your current contents insurance document or ask your insurance provider whether your policy covers items stored in storage units before forking about for additional cover.

Personal storage insurance can protect against things like theft, fire and water damage, and may be useful if your existing policy doesn’t stretch to items left in storage units, and/or you need to cover high-value goods like electronics, antiques or even important documents kept in a self-storage unit.

Self storage insurance may also provide extra features that you may not find in a standard home insurance policy like damage from environmental factors like humidity or pests because storage facilities aren’t supervised or occupied in the same way as a home or business.

Bear in mind that you may also have to take out storage insurance as part of your self-storage rental agreement with the storage company.

Does my home insurance cover storage units?

Maybe not. Home insurance policies are designed to offer a safety net for your belongings within your home or when they’re with you out and about.

But gaps can start to open up when your belongings aren’t in your home or on your person, especially for long periods of time. Possessions stored in a facility away from your registered home may not be covered at all, or to a lesser extent than those in your home.

And if you’re planning to or currently using a storage unit for business items once stored at home or an office like stock, documents or equipment, check the details of your business insurance, as you may not be covered, including for professional liability if those items include other people’s personal information, for example.

What does storage insurance cover?

Storage insurance policies usually offer:

• Protection against fire, theft, vandalism, and weather-related damage, including storms and floods. Check if the policy covers natural disasters though - and how they are defined, as cover can vary.

• Your personal items like furniture, electronics, and clothing are usually covered. Additionally, events such as water damage from leaking facilities or damage from faulty electrical wiring are included.

Storage cover won’t usually cover things like:

• Cash, precious metals or gems

• Damage from pests like rodents or insects

• Some policies may also exclude valuable artworks or electronics

How do I choose a self-storage unit?

Picking the right self-storage for your needs, circumstances and the kind of items you’re storing comes down to a couple of key decisions, including:

• Location: Choose a facility near your home or work to make it easier to access your stored items, saving time, money and hassle on travel.

• Size options: Ensure the facility offers a variety of unit sizes so you can store everything you need without paying for empty space. Ideally, this isn’t a permanent storage solution, so being able to change the size of the unit you pay for as you repatriate items to a property or business could be useful.

• Security measures: Look for CCTV surveillance, secure access gates, and individual alarms on units. Good security could help keep your insurance premiums down as well as offering peace of mind

• Maintenance: A well-maintained facility shows the management’s commitment to protecting your belongings from environmental damages like damp or pests

• Access hours: Consider facilities that offer extended or 24-hour access.

• Customer reviews: Look at online reviews or ask for customer testimonials

• Cost and contract terms: Compare prices and check the flexibility of lease terms. Some facilities offer discounts for long-term commitments or additional features, including insurance. Check for hidden charges on your monthly bills you may not be aware of.