Property in Storage Locker Insurance
People store their belongings in various storage units. Self-storage units have become a fast-growing segment in the real estate industry. This industry has now turned into a multi-billion dollar business in Canada. Individuals can use storage units either for personal use or to rent them out. These units are helpful for storing belongings during natural disasters, relocation, divorce, or similar situations. However, self-storage is also vulnerable to natural disasters, making storage locker insurance important.
Insurance for self-storage is essential to claim repairs or replacement for damaged property. Many storage units are destroyed by arson every year, causing severe losses to stored belongings. Arsonists are often difficult to catch, and even if caught, they cannot pay for the damaged property. Accidental fires can also cause damage, which highlights the necessity of contents insurance for storage units. Currently, homeowners, renter’s insurance, and business policies cover personal belongings. But there are limitations to storage unit coverage. For example, vehicles like cars or motorcycles stored in a unit cannot be covered under a storage unit policy. A separate insurance policy for the car or bike is required.
Storage units are also used for storing art and special collections. Collections like artwork need a separate policy. Insurance agents can provide special policies for such items and other related collections. It’s essential to remember the restrictions on materials stored in storage units. Prohibited items include chemicals, paint, gasoline, motor oil, or other flammable substances. Storing these items can void a rental agreement. Belongings in a storage unit are usually covered under personal property coverage in a homeowner’s policy. This coverage includes protection against fire, theft, lighting, and vandalism. However, coverage is limited, and the insurance company pays only a set amount for losses. If the value of stored items exceeds off-premises coverage, there are additional options.
Increased coverage limits:
Owners can increase personal property coverage limits if off-premises coverage is only a fraction of the property’s total value.
Increased coverage for high-value items:
Homeowners can purchase scheduled personal property coverage for high-value items. Examples include jewelry, art, or other expensive belongings stored in the unit.
Storage locker insurance:
This coverage provides protection for belongings stored in the unit, offering insurance specifically for items kept in storage; contents in storage. It can be included in the contract or added at an extra cost. Homeowners must decide whether to include storage unit coverage in their homeowner policy or purchase a separate policy.
