PHOENIX — Do you really need insurance for a storage unit? The answer is yes, in fact, many storage units require proof of insurance before renting a unit to consumers. However, you may already have coverage.
Nathan Mason, with Insurance Professionals of Arizona, explains that even though a storage unit is off-site from your primary residence, your belongings inside the unit would likely be included in your personal property coverage from your homeowner's condo, or renter's insurance.
"Most of those policies will have coverage automatically extending for personal property and liability over to a storage unit with at least $1,000 in coverage minimum or 10% of their coverage," Mason said.
Some companies will also have specific endorsements consumers can add on which would extend greater coverage to the storage unit for more personal property coverage.
What should consumers do if a unit is damaged?
It depends on what caused the damage. If the liability falls on the storage company, consumers may be covered under the company's insurance. However, consumers will have to wait for the full investigation for the cause to be determined and then to learn what the company's policy covers. Consumers can also file under their own policy. Mason says consumers will know right away what is covered and what is not, and the claim will likely be completed more quickly. Some storage companies may offer insurance options for consumers who rent units with them. If consumers do opt for that policy, then filing a claim would not impact their own homeowner's, condo, or renter's insurance.
Insurance policies and coverage can all read differently, so it's best for consumers to arm themselves with knowledge and understanding of their own policies by talking with their insurance agent.
If it comes down to filing a claim, consumers don't want to be at the mercy of their own memory. Next time you stop by your storage unit, take photos of what's inside or write down an inventory list. It's best to have the information and not need it, than to need it and not have it.
