Storage Unit Insurance Explained

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Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated on May 30, 2024

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Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated May 30, 2024

Visit author page

2 minute read

Article Contents

Having lots of space is becoming more of a luxury these days, so many of us turn to storage units as a practical solution for managing our belongings. Whether it’s for storing seasonal items, holding possessions during a move, or simply decluttering our living spaces, storage units offer a convenient way to keep our items. However, these stored items’ safety and security often raise an important question: Are they insured? While they might be included in your home insurance policy, there are nuances you should know about. This article delves into the realm of storage unit insurance, highlighting its importance, coverage, and the peace of mind it offers.

What is Storage Unit Insurance?

The Canadian storage market had grown at an average annual rate of 3.1% for five years from 2016, reaching $1.1 billion in revenue in 2021. This high demand was driven by several factors, such as the population relocating from urban areas to suburban, businesses downsizing due to expensive office space, and people using storage while completing home or business renovations and construction. 

While these storage facilities often have security measures, these might not be sufficient to cover the total value of stored items, especially in natural disasters or unforeseen events. Here’s where storage unit insurance comes into play. Storage unit insurance, commonly called ‘storage insurance,’ is a specialized policy designed to protect personal or business belongings stored in a storage facility. This type of insurance becomes crucial considering the various risks associated with storage units, such as theft, fire, and environmental damage.

The Importance of Storage Unit Insurance

  • Comprehensive Protection: Storage insurance provides coverage against a range of risks, including theft, fire, and certain types of water damage. This is particularly important as these risks can occur unexpectedly and cause significant financial loss.
  • Limitations of Home Insurance: Many homeowners’ policies offer limited coverage for items stored off-site. In some cases, this coverage might be restricted to a percentage of the policy’s total coverage amount or might not include specific perils that storage insurance would cover.
  • Facility Requirements: Many storage facilities in Ontario and other regions mandate that renters have insurance coverage for their stored items. This requirement ensures that the renter and the facility are protected in case of damage or loss.

Understanding Your Coverage

Inclusions:

  • Fire Damage and Theft: The most common risks covered by storage insurance policies are fire damage and theft.
  • Weather-Related Damages: Coverage often includes damages caused by certain weather events, although this can vary based on the geographical location and the specific policy.

Exclusions:

  • Natural Disasters: Events like earthquakes and floods are often not covered under standard policies, requiring additional coverage.
  • Pest Damage: Losses from pests, such as rodents or insects, are typically excluded from standard storage insurance policies.
  • Negligence: Damages resulting from the renter’s negligence, such as improper packing or maintenance, are not covered.
Inclusions and Exclusions of Storage Unit Insurance

Choosing the Right Storage Insurance in Ontario

  • Look Into Your Existing Policies: Check your current homeowners or renters insurance policy to see if it provides any existing coverage.
  • Evaluate Your Belongings: Assess the value of the items you plan to store. High-value items might require additional coverage.
  • Shop Around: Compare different insurance providers and policies. Look for a balance between comprehensive coverage and affordability.
  • Understand Policy Details: Pay close attention to the policy’s exclusions, deductibles, and coverage limits to ensure it meets your needs.

Maximizing Protection for Stored Items

Since insurance policies often exclude various types of damage, it’s wise to take extra precautions to safeguard your belongings. This becomes particularly crucial for items of sentimental value, like family photographs or heirlooms. To ensure the safety of your possessions in the storage unit, consider the following protective measures:

  • Quality Packing Materials: Purchase robust boxes, bubble wrap, and additional protective supplies to shield your belongings from harm.
  • No Perishable Items: Ensure your unit is free of any food, plants, or items that can perish.
  • Temperature-Controlled Units: For sensitive items like electronics, documents, or antiques, consider renting a temperature-controlled unit to protect against extreme temperatures and humidity.
  • Regular Visits: Inspect your storage regularly unit to verify the continued good condition of your items and the security of the unit.
Maximizing Protection for Stored Items

The Bottom Line

Storage unit insurance is essential to using storage facilities, providing vital protection for your belongings when they are stored away from home. Whether in Ontario or elsewhere, understanding and investing in the right storage insurance policy can save you from potential financial losses and give you peace of mind. Remember, while your items might be out of sight, they shouldn’t be out of protection.

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