Property in Storage Locker
People store their property in many storage units and self-storage units have emerged as a fast-growing segment in the real estate business. It has now become a multi-billion dollar industry in Canada and people can use it either for themselves or can give on rent. Storage units help people in keeping their belongings in case of natural disasters, relocation, divorce or any other case. Self-storage is also prone to natural disasters so storage locker insurance is also necessary.
The insurance for self-storage is necessary so that the owner can claim for repair or replacement of a damaged property stored in the storage unit. It has been estimated that many storage units are destroyed by arson every year, which can cause severe damage to the property stored in the storage.
Arsonists are not normally captured easily or even when they are captured, they cannot pay the compensation for the property that has been damaged. Accidental fire can also cause loss to the storage and the belongings in it so the insurance of a storage unit is necessary.
Now homeowners, renter’s insurance, and business policy provide protection to personal belongings. But there are limitations in the storage unit coverage. There are limitations to the items to be stored in a storage unit. If a person has stored a car or motorcycle in a storage unit, he cannot insure them for a storage unit policy. He has to purchase a separate insurance policy for the car or bike.
The storage units are also used to store arts and other types of special collections like artwork need a separate policy. The insurance agent can provide a special policy for these collections and other related things.
One must also remember that there are restrictions on the materials that are to be stored in a storage unit. These include chemicals, paint, gasoline, motor oil, or other inflammable items. These items can make a rental agreement can become void.
Insurance for belongings in a storage unit is covered under personal property coverage in the homeowner’s policy. The coverage includes fire, theft, lighting, vandalism. The coverage is limited and the insurance company will pay only a certain amount for the loss. There are various options in case the value of the stored items is greater than the off-premises coverage.
Increased coverage limits: The owner can increase the personal property coverage limit if the off-premises coverage is equal to only a fraction of personal property.
Increased coverage for items having high value: The homeowners can purchase scheduled personal property if the storage unit has a high-value item like jewelry, arts, etc.
Storage locker insurance: This coverage includes the protection of the belongings, which can be a part of the contract, or the owner has to pay an extra cost for the coverage. The homeowner has to think about whether he has to include the storage unit coverage in the homeowner policy or purchase a separate one.