Blog Storage Unit Insurance

Mar 15, 2023

Here’s what homeowners need to know about insurance for storage units

Man moving boxes at storage facility

Did you know storage unit insurance is usually already included in your policy? Having a storage unit is increasingly common for Canadians. It's a great place to store those things that can clutter your living space that you seldom use.

Tenants and homeowners are often surprised to find out that their belongings in storage do have some protection. How much will depend on your policy and insurer. It’s important to consider how much you are storing and what its value is so your home insurance in Canada is enough.

Whether you are looking for a place to store items while you move or travel, or you want to declutter your place, you want to make sure it is covered for any potential damages. Here is what you need to consider when it comes to storage unit insurance.

What is storage unit insurance?

Storage unit insurance will protect your items that are in a storage unit. Some areas that would be covered include theft, weather, and vandalism. Things can go wrong, and insurance will protect your belongings from accidents.

You will likely have some coverage from your renters or home insurance, but it is often quite limited when it comes to off-premises belongings away from your home. Some storage facilities will require you to have proof of insurance and a certain level of coverage in your policy.

Does insurance cover storage units?

Depending on the company and the plan, insurance for storage units can be added or included. Since many storage facilities require clients to have protection, they may offer their options, or from a third-party insurer. Always check what is covered and what is excluded so there are no surprises in the event of a claim.

How much coverage does insurance unit insurance provide?

Homeowners and tenant insurance generally cover up to 10% of your policy while they are in storage. Note that some items may be excluded from coverage if they are in a storage facility. If your personal property limit is $20,000, then $2,000 worth of items would be protected.

Another example to consider is that, if you are working on renovations for your home office and your living space is unfit to store items. You want to move some books, a desk, and art into a storage unit. If the items get ruined in storage, you would be covered for up to the full coverage limit instead of only 10%. Verify coverage with your provider beforehand just to make sure.

Do storage units have their own insurance?

Storage facilities can require customers to have coverage. Keep in mind that storage companies will have commercial insurance to protect their property, but it won’t include your items. You are not covered under the storage facilities policy.

What does storage unit insurance cover?

Storage unit coverage varies from place to place, so always ask for details and read the fine print. Most plans will cover your belongings against damages including :

  • Fire damage, smoke, or lightning.
  • Riot or civil unrest.
  • Theft or vandalism.
  • Extreme weather such as hail or windstorms.

Most policies will not protect your items in the event of floods, earthquakes, or mudslides. It’s always worth speaking to an expert to add additional options such as water damage insurance for items that are in storage.

boxes at a storage unit

Options for storage unit insurance

There are a few options to consider with insurance for a storage unit. Here is a look at some things to consider :

  • Typical coverage for homeowners and tenants : In most cases, home and renters insurance cover stored property for up to 10% of the total policy. If that’s not enough, you’ll need to upgrade your protection.
  • Storage unit company : Most facilities will have in-house insurance or options from a third party you can consider.
  • Expanding policies : You can consider increasing the overall limit to your policy to cover more items.
  • Endorsements : Specific endorsements for insurance are specific additions to your plan. You can customize it to include specific items that are in storage.

How to protect your items in storage

If you are looking to place items in storage, look for a reputable storage facility. Read reviews online and review their security measures and policies. Here are a few tips to consider when storing items :

Make sure the locks work and ask about 24-hour video surveillance and alarm systems. You’ll also want to ensure the premises are clean and free of mildew and rodent damage that can damage your belongings. When you are packing items for storage, protect fragile items, and use plastic bins

If you are storing items longer than 90 days, you may want to consider a standalone policy such as contents insurance to cover unique items and more risks. Even if a storage facility offers coverage, be sure to speak with a ThinkInsure broker to learn more about insurance endorsements and get a better rate.

How much does storage unit insurance cost?

Depending on the coverage and your provider, storage unit policies can cost between $8 to $40 per month. This will depend on any additional limits you add, or if you choose the base offer.

Storage unit insurance FAQs

You may be surprised to learn that insurance for renters can cover items in storage. If your policy covers you for $35,000 in personal property protection, it could include $3,500 for items in storage. Coverage for items in an onsite storage locker in your apartment is typically included. This will vary depending on your policy limits. Always speak with a broker to ensure you have your needs met, or if you want to add more.

Yes! Accidents happen and you want to ensure your property is protected. Speak with the storage facility about their options, to contact us to help navigate the process.

Most tenant, home, and condo insurance agreements will include items in storage. Always check your policy before you sign any documents to ensure you have enough coverage.