Does Homeowners Insurance Cover Items in Storage Units?

Many Americans have used today’s social distancing rules as incentives to do their spring cleaning. Clutter is something that everyone deals with and that few people enjoy. To cut down on clutter in their homes, many people rent storage units to house items they don’t use frequently. If you keep items in a storage unit, that does not mean they don’t have value to you. You will want to protect them and probably replace them if they ever sustain damage. However, you might wonder if your homeowners insurance will cover items in storage?

Lucky for most people, homeowners insurance will cover the possessions inside storage facilities. However, coverage limits and exclusions will apply to these items. Therefore, you’ll have to make sure your coverage can adequately address losses if they occur.

Coverage for Possessions in Storage

Homeowners insurance typically offers possessions insurance. It might cover your electronics, clothing, furniture, appliances and various other belongings. One benefit to homeowners is that the policy will likely apply to items housed both on or off your property.

So, when you place items in a storage unit, they will likely continue to have a degree of protection. This storage unit might be on your own property, or one that you lease from a storage company.

Still, though homeowners insurance might help, it might still not be enough coverage. Once you take an item off your property, possessions coverage might restrict. You’ll have to make accommodations to address these limitations.

Limits on Items in Storage

Commonly, once you take an item to a storage unit, the amount of coverage you have for the possessions will drop. For example, your possessions insurance might include a limit of $50,000. This is the largest amount it will pay for all contents in your home. However, the policy might even pay a lower maximum limit, say 10% ($5,000), for the items in a storage unit. So, if you make a claim for the contents of the storage unit, then your policy might only pay up to $5,000 for these items.

However, there are ways you can address this issue. For example:

  • You might increase your overall possessions insurance limit. This will likewise increase coverage on stored items.
  • Another solution might be to buy a scheduled personal property endorsement for certain items. With these endorsements, you can insure high-value possessions that need special coverage considerations. The endorsement can apply both on your property and in storage units.

While some storage companies offer insurance for clients’ stored belongings, the coverage provided by homeowners insurance is often a better fit for your unique items. However, just make sure that you have the right coverage to address your needs.

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