While the storage facility has its own insurance to protect its property, it may not cover the renter’s belongings. Renters can get coverage for their belongings through several options, including their own home insurance, a tenant’s policy, a policy arranged by the storage unit, or a policy on their belongings. Each option has different limits and exclusions.
To write this article, our editorial team reviewed IBC’s guide to types of home coverage, IBC’s policy-reading guide, the federal home insurance guide, and the federal flood-ready belongings guide.
Do You Need Storage Unit Insurance in Canada?
You may be required to have insurance if the contract with the facility requires it. Also, consider whether you could afford to replace your belongings in case of theft or damage. Start by contacting your home, condo or tenant insurer and ask if personal property is covered while it’s in storage.
If your current insurer doesn’t provide sufficient coverage, you may want a plan from your storage facility, an endorsement to your policy, or a stand-alone storage-unit insurance policy.
Why Do I Need Storage Unit Insurance?
Some storage facilities require renters to show proof of insurance. Regardless of the storage facility’s rules, renters should consider insuring the items they store.
Theft, fire, water, weather and pests could cause major losses. Read the insurance policy to ensure you’re covered for the items and circumstances. Read your facility’s rental agreement for waivers, limitations of liability, prohibited items and required notification times.
If the facility’s gate, camera or lock malfunctions and results in losses, this doesn’t necessarily mean the facility is liable. Ask for and read the insurance policy or certificate if your storage-unit rental includes an insurance or protection plan. Don’t rely only on what was said during a sales presentation.
Compare the Three Common Coverage Routes
| Route | Possible advantage | Questions that decide the fit |
|---|---|---|
| Existing home, condo or tenant policy | Your existing policy may provide coverage for personal property located away from your residence. | Does the storage space qualify as insured premises? Is the storage considered temporary? Do location or off-premises limits apply? Would a claim be considered a loss on the policy? |
| Facility-arranged plan | It can be an easy add-on and fulfil the requirements of the rental contract. | Who is the insurer? What documentation proves coverage? Compare the property and perils covered, limits, deductibles, valuation and claim process. |
| Endorsement or separate contents policy | It may offer specific limits for stored property. | Is the coverage primary or excess? Is there coverage during transit? How is the coverage renewed? Will claims affect future underwriting or pricing? |
A separate policy doesn’t necessarily protect your home-insurance rates or future decisions. Although underwriting practices vary by insurer, insurers can ask about your loss history.
What Does Storage Unit Insurance Cover?
| Loss or property | What to verify |
|---|---|
| Theft or vandalism | Is forced entry required? What evidence do you need to make a claim? Is mysterious disappearance covered or specifically excluded? |
| Fire or smoke | Check the covered perils, overall property limit, valuation rules, deductible, and whether debris-removal or cleaning costs are included within the limit. |
| Water and weather | Check how rain, roof leaks, burst pipes, sewer backup, overland flood and storm surge are defined and excluded. |
| Pests, mould and gradual damage | Check the policy wording for limitations, exclusions and specific storage conditions. |
| Fragile or temperature-sensitive items | Is damage from heat, cold, humidity, breakage, inherent defects or improper packing covered? |
| High-value and unusual property | Check for special limits or exclusions on currency, securities, jewellery, documents, art, antiques, collectibles, vehicles and commercial property. |
| Transit and loading | Does the policy take effect at your home, during transit, or only after the property is secured in the unit? Some policies take effect when the storage facility records your move-in. |
Read More: See How Replacement Cost Differs From Actual Cash Value
Does My Home Insurance Policy Include Storage Insurance?
IBC says a tenant insurance policy may pay for items located elsewhere. Likewise, home and condo policies may cover your belongings when they’re not inside the insured premises.
Don’t assume items located elsewhere are covered for 10% or 15% of the personal-property limit. Read the insuring agreement, off-premises or location limit, declarations, conditions, endorsements and exclusions to learn how much protection applies.
Understand how claims are settled. If paid on an actual cash value basis, the insurer deducts depreciation. If there is a replacement-cost provision, find out if the insurer can keep part of the settlement until you provide proof of replacement. Check whether a limit applies to particular items, as it can reduce the settlement even if the personal-property limit appears adequate.
How to Choose the Right Storage Insurance
Itemize everything you plan to store, take photos and determine each item’s replacement cost. Keep receipts and write down serial numbers for big-ticket items.
Note any items that are not covered. The storage facility may prohibit some items, and a storage insurance policy may not cover others. Specialized insurance may be required for vehicles, collections and business inventory.
Get the basics of your policy in writing. Make sure you get written confirmation that includes your storage address and unit, and the date the insurance takes effect. You should also know who the named insured is, how you’ll be billed, what happens if the policy is cancelled, and who to contact with a claim.
Before considering cost, compare coverage types and limits, deductibles, how items are valued, and what kinds of losses are covered. A self-storage rental agreement controls the rules at the facility. In contrast, an insurance policy controls what will be paid when items are stolen or damaged.
A Simple Limit Test
Replacement-cost total: $12,000. Confirmed storage limit: $5,000.
At least $7,000 in value would be uncovered, not counting deductibles, valuation rules, special limits, excluded items or excluded causes of loss.
In this situation, consider storing fewer items to reduce the value or obtaining a higher confirmed limit. Don’t assume your household contents limit fully applies in storage.
Tips to Secure Your Storage Unit
Make sure that the facility provides secure, dry units with controlled access. Ask about lighting, the condition of unit doors, policies for reporting problems and entry procedures. Find out what cameras are used and whether they are monitored. Ask how long recorded images are available for review.
Follow the lock guidelines provided by the facility and your insurer. Limit access to your storage unit by restricting the key or entry code to trusted individuals.
Don’t leave items on the floor. Use shelving or stack belongings on pallets. Seal plastic totes to protect against moisture and leave spaces around items that tend to collect moisture. Check with the facility about temperature or humidity levels before renting a climate-controlled unit. Find out how your insurance policy covers climate-control malfunctions.
Don’t store prohibited items, including food, live plants, flammable materials or hazardous substances. When possible, store irreplaceable mementos and important documents elsewhere.
Check on your items often. Report problems with unit doors or security and signs of moisture or pests in writing.
Read More: See How Home Insurance Treats Theft and Break-Ins
What to Do After a Storage Loss
- If it is safe to do so, go to your storage unit. If there may be a fire, building collapse, electrical or chemical hazard, or crime in progress, do not enter the building. Call for assistance.
- Call the storage facility and ask that it preserve information that could help the investigation, including incident reports, access records and surveillance recordings.
- Do not sign anything, such as a release of liability to the storage facility, unless you understand what you are signing.
- Contact your insurer or plan administrator as soon as possible. Ask what documentation they require, whether they need to inspect the unit, and what you can do to minimize losses.
- If it is safe, don’t move items until they are photographed. Take pictures of the unit, door, locks, items and water level, if applicable.
- Document everything. Your insurance company may need proof of contents, including inventories, receipts and serial numbers.
- Save damaged property until the insurance company authorizes disposal.
- Track costs incurred to minimize damage.
Read More: Read What to Do About a Delayed Home Insurance Claim