Renters insurance replaces your belongings if they’re damaged or stolen.
However, there are limits to coverage.
Does renters insurance cover my belongings in a self-storage unit
Renters insurance protects your personal property and furnishings from damage due to covered events, known as insurance perils. A peril is an event that may damage your belongings. Common insurance perils include theft, fire, and storms.
Theft of your belongings is covered even if it occurred outside of your rental unit under personal property coverage. If your personal laptop is stolen while you’re at a coffee shop, renters insurance will cover it.
Likewise, your belongings inside your self-storage unit — considered “off premises” coverage — would be covered if damage or loss is due to an insurance peril. Damage from pests or rodents is not a covered insurance peril.
Insurance carriers may limit “off premise” coverage, so check with your insurance provider. If you are planning to leave your belongings in storage long-term, you may want to reach out to your insurance provider to make sure they’ll be covered.
If you live in a flood zone or area where earthquakes are common, check your flood insurance and earthquake insurance policies regarding coverage extending to your self-storage unit.
How much does renters insurance cover for self-storage units
Renters insurance policies cover up to a certain amount, usually around $20,000 or $30,000 worth of coverage depending on the value of your personal belongings.
Many homeowners and renters insurance policies have lower limits for items located off premises, usually a percentage of your insured value. For example, if your renters insurance is for $30,000, your off-premise coverage may only be 10% or $3,000.
The normal restrictions and limitations to personal property coverage apply. Most renters insurance coverage for electronics is capped at around $2,500. Jewelry limits are usually lower, at $1,500. If your electronics or jewelry exceed these limits, you should increase your limits or get an add-on rider.
Is it better to purchase insurance from the self-storage facility
Even with limits and restrictions on personal property coverage for renters insurance, you have the option to increase your renters insurance coverage amounts or get endorsements or floaters. If you are able to increase your coverage and have adequate coverage through renters insurance, then it’s not necessary to purchase additional insurance from the facility.
But if you are moving out of your rental and cancelling your renters insurance, then you should purchase insurance through the storage facility.
Many self-storage facilities provide reimbursement based on the square footage of the unit, according to the Insurance Information Institute. As with any insurance, you should check coverage limits and whether replacement is actual cash value (ACV) or replacement cost.
Replacement cost is the cost to replace the item with a new or used product. Actual cash value (ACV) takes into consideration depreciation of the item. Actual cash value is usually lower than the replacement cost value.