One of the most important benefits of home or renters insurance is protecting your belongings if something goes wrong. People with many personal or luxurious items may opt to put these items in storage units for extra protection. Here is a look at how storage units impact home and renters insurance policies.
Research shows that more people are using storage units to host their extra personal items that they no longer have room for or as a place to keep their items until their home is renovated. If you have a renters insurance policy, your personal items are covered while they are in storage. However, storage unit insurance is not unlimited. To fully protect your personal items, consider adding extra coverage.
Read: Five Biggest Renters Insurance Mistakes and How to Avoid Them
Renters insurance policies cover your personal items in storage regardless of whether you decide to move one day or go on vacation. You can have peace of mind that your items are protected if a fire occurs at the storage facility or severe weather moves through the area. Any damage to your personal items is covered, and your insurance company will help replace the items.
Be aware that most renters insurance policies only cover personal items outside of your home for close to 10 percent of your property coverage. While renters insurance is an asset if you have items in a storage unit, the coverage on such items will be relatively low. You can opt to raise your coverage limits, purchase storage insurance or add some endorsements to your policy. Check to see if your policy is an open perils policy or a named perils policy. An open perils policy covers you in unique situations based on your coverage. Named perils policies cover your personal items if they are damaged, vandalized, or stolen. If you have an open perils policy, be aware of possible exclusions such as natural erosion, rust, mold, and any rodent damage. You will also need to amend your policy to cover any flood or earthquake damage to your items in storage.
Read: 4 Tips to Maximize the Benefits of Your Renters Insurance
Storage unit insurance has similar features to an endorsement. The level of coverage varies according to the company and storage center. Many storage centers partner with an insurance company to offer coverage. Compare prices with your renters insurance coverage before making a decision. In some cases, you may be able to raise your coverage limits on your renters insurance policy at a reduced cost compared to purchasing storage insurance.
Add-on coverage raises your property coverage level. This is beneficial, especially if you have luxury items. Adding endorsements will increase your rate, but you will also have a higher sense of security that your items are protected. Endorsements prevent you from having to pay out of pocket to repair or replace items that are valued above your coverage limit.
Make sure that you store your items in a safe manner. Avoid using plastic bags that can attract mold. Store all of your valuables in a safe place where the risk of theft is low. Organize your items so that you can find them when you need them. Take inventory of your items so that you will be aware of their true value. If you opt to put your items in storage, look for a high-quality facility with minimal chance of a disaster.
Placing your excess items in a storage unit does come with several benefits. However, it's essential to assess your renters' insurance first so that you can make the best financial decision regarding coverage. The agents here at Jack Stone Insurance Agency will assist you through the process. Contact us today to get started!
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