Insurance for Your Possessions While in Storage: What You Need to Consider

Posted on: 26 October 2017

When you need to use a self-storage facility, it's important to consider the value of the items that will be stored. This is not just the sentimental value, although old photographs and other personal items should be correctly stored to ensure their preservation. But what about when you might need to store items that have a significant cash value? As secure as the facility might be, there can be mitigating factors beyond their control (such as extreme weather), and so you need to think about whether you should obtain an insurance policy that will cover the goods while they're in storage.

Your Existing Insurance

Your existing home and contents policy will generally only cover your possessions when they are present in your home. The moment they leave the premises, they are no longer considered as part of the contents of your home. Still, you might want to check with your existing provider to find out whether they offer an extension that will insure the goods while they're being held in a secure offsite location. This can simply mean a small increase in your monthly premiums while the extension is in effect.

New Insurance

It can also be rather straightforward to simply obtain an insurance policy from the storage facility. This will incur an additional charge beyond your storage fees, but this is a simple way to go about covering your goods. As with any policy, it's vital to check the details. While the policy might be offered by the storage facility, you should find out which insurance company is the underwriter. It can also be prudent to check for conditions such as whether you'll receive replacement value for an item if a claim is made, or merely a depreciated value that reflects the age of the goods. You should also double check all exclusions to see if any are applicable to you.

In Transit

Be mindful of the fact that your possessions are unlikely to be covered while in transit, as they will essentially be between policies during this brief time. If the goods you're storing are of significant value or are particularly delicate, then you might wish to consider using a professional transport company. This means that your goods will be covered by their policy while in transit.

As with any type of insurance, you would hope that you never have to make a claim. And yet, it can be very important to remember that sometimes possessions stored in a place that is not your home can also require the protection of insurance.