Should You Insure Items Left in Storage?

When you're preparing to relocate overseas or go on an extended journey, one of the significant decisions you'll need to make is whether to store your belongings. While it can be a practical solution, it also raises an important question: Should you insure your items while they're in storage?

Whether you’re downsizing for a move, transitioning between homes, or simply holding onto things for sentimental or practical reasons, your items will likely be stored for months or even years. But the security and protection of those items during that time can be a concern. Let's explore the factors to consider when deciding whether you should insure your items in storage while you're away.

1. Storage Facility Insurance Options

Most storage facilities offer some level of insurance coverage for the items you store, but the specifics vary significantly. Here are a few points to consider when reviewing the insurance options provided by the storage company:

• Basic Coverage: Many facilities offer basic coverage that might only protect against specific risks, like fire or theft. This insurance usually doesn’t cover accidental damage or natural disasters like floods or earthquakes.

• Optional Insurance: Some facilities provide an upgraded option for additional coverage. For example, this could include protection for things like mold damage, vandalism, or even items that were improperly stored.

• Policy Limits: Take note of the policy limits offered by the storage facility. You may discover that your items exceed the limit of coverage provided, or that the deductible is higher than you’re comfortable with. Be sure to read the fine print to know exactly what you’re covered for.

If you choose to rely on the facility’s insurance, be aware that it might not be enough, especially if your stored belongings are high-value items. In such cases, supplemental coverage might be necessary.

2. Your Homeowner’s or Renter’s Insurance

Before opting for storage facility insurance, it’s worth checking your existing homeowner’s or renter’s insurance policy. Some policies will extend coverage to belongings in storage, especially if you're storing items temporarily as part of a move.

• Off-Premises Coverage: Many home insurance policies include off-premises coverage, which covers your belongings even when they’re not in your home. However, the coverage amount may be limited—often up to 10% of the value of your home’s contents. If your stored belongings exceed that threshold, you might need to increase your policy limits.

• Claim Process: If you're planning to rely on your existing home insurance, make sure to ask your provider about the claim process in the event of a loss or damage. Understanding the details and exclusions upfront can help you avoid surprises.

• Protection Gaps: If your policy doesn’t extend to storage units, or only covers certain types of damage (for instance, fire but not flooding), you might want to consider purchasing additional insurance specifically for your storage unit.

3. The Value of Your Stored Items

When deciding whether to insure your items in storage, it’s essential to assess their value. Are they items of sentimental value, or do they hold significant financial worth? Consider the following:

• High-Value Items: If you’re storing high-value items—such as electronics, antiques, or family heirlooms—adequate insurance becomes even more critical. For example, a sentimental item like a piece of jewelry or artwork may not have a price tag that’s easily replaceable. Ensuring that these items are covered can give you peace of mind during your absence.

• General Household Goods: For everyday items that aren’t of significant value, it may not make sense to invest in high-cost insurance. However, if you still want some coverage, you might choose a mid-tier policy to protect against theft or accidental damage.

4. Storage Unit Location and Security

The location and security of your storage unit should play a big role in determining whether you need extra insurance.

• Climate Control: If you’re storing sensitive items, such as electronics, musical instruments, or furniture, consider whether the storage unit is climate-controlled. Extreme heat, humidity, or cold can cause irreversible damage to your belongings, and your insurance should reflect that potential risk.

• Security Measures: Check the security features of the facility. Does it have surveillance cameras, security personnel, and limited access? A storage unit in a high-risk area with minimal security may require more comprehensive insurance coverage than one in a safe, well-monitored facility.

5. Natural Disasters and Special Risks

Some locations are prone to specific risks, such as flooding, earthquakes, or hurricanes. If you are storing items in an area prone to such events, it's wise to check if your insurance covers these types of risks. In many cases, flooding and earthquakes require special insurance coverage, which may not be included in your basic policy or storage facility coverage.

• Flooding: Floods can cause irreparable damage to stored items, so if your storage unit is in a flood-prone area, you should consider separate flood insurance.

• Earthquake or Fire: If the area you're storing your items in is prone to earthquakes, fires, or other natural disasters, look for policies that offer protection from those events.

6. How Long Will Your Items Be Stored?

The longer your items remain in storage, the more likely they are to experience damage due to wear and tear, temperature changes, or accidents. If you're planning to store your items for an extended period, additional insurance is generally recommended. For example, a storage unit that remains unused for months or years is more susceptible to issues like mold, pests, or deterioration.

7. Alternative Options for Insurance

If the insurance options offered by your storage facility or home insurance policy aren’t sufficient, you can look into third-party storage insurance. These specialized companies can offer more comprehensive coverage options for your items. Look for policies that cover things like vandalism, theft, fire, and even accidental damage while in transit.

Conclusion

When storing your belongings for an extended period, it’s important to weigh the value of your items, the security of your storage facility, and the level of insurance protection you need. While some basic insurance may be included with your storage unit, it's often wise to invest in additional coverage, especially if you have high-value or irreplaceable items.

By thoroughly researching insurance options and understanding the risks involved, you can make an informed decision that provides peace of mind while you're away.