Does Renters Insurance Cover Storage Units?

If you don’t have adequate space in your rental apartment, you may consider keeping some of your personal belongings in storage units. While renters insurance covers your personal belongings at home, and even outside, does it include storage units?

Yes, renters insurance does cover your belongings kept in storage units, but at a 10% sub-limit on your personal property coverage for damage or loss due to fire, theft, and other covered perils under your policy.

Although exclusions apply as well, if your personal belongings in storage units get damaged due to flood, earthquake, or a pest infestation, your renters insurance policy won’t cover the loss.

If you’re relying on renters insurance to protect items in storage, this guide can help you make an informed decision as it explains how storage unit coverage works, what’s included and excluded, and when you may need additional protection.

How Does Renters Insurance Cover Your Belongings in Storage Units?

Renters insurance covers off-premises loss of personal belongings due to accidents and events like fire, theft, vandalism, windstorms, water damage, and other covered perils, generally at a 10% sub-limit of your policy’s personal property coverage.

This means that if you have personal belongings worth $50,000 in your storage unit, your renters insurance policy will cover up to $5,000.  Some insurers provide 10% or $1,000, whichever is greater.

In that case, if 10% of your personal property limit equals $800, your storage coverage would increase to $1,000 instead. Your deductible still applies to any approved claim.   Typically, these off-premises coverage limits can vary by state and your choice of insurer. For instance, if you’re exploring affordable renters insurance in Michigan, you can consider seeking help from a reliable Michigan insurance agency to find adequate personal property coverage for storage units.

What Perils Are Covered by Renters Insurance for Storage Units?

Renters insurance typically covers storage units under a named-perils policy. In other words, your personal belongings specifically cover risks that are listed in your policy. If the cause of loss is not listed, it won’t be covered.

Common covered perils usually include:

• Fire
• Lightning
• Smoke damage
• Theft
• Vandalism or malicious mischief 
• Windstorms or hail 
• Explosion 
• Riot or civil disturbance 
• Damage caused by aircraft 
• Damage caused by vehicles 
• Falling objects 
• Weight of ice, snow, or sleet 
• Sudden and accidental discharge or overflow of water from burst water pipes 
• Sudden and accidental tearing apart, cracking, burning, or bulging of certain systems 
• Freezing of plumbing, heating, or air conditioning systems 
• Sudden and accidental damage from artificially generated electrical current from a power surge or a prolonged power outage.

However, coverage only applies if the loss results directly from one of these named perils and is not otherwise excluded by your policy.

Learn More: What is Renters Insurance, and What Does it Cover?

What Perils Are Not Covered by Renters Insurance for Storage Units?

While renters insurance only covers 16 named peril as it was discussed earlier, there are certain risks and events that are specifically excluded from renters insurance. These exclusions apply even to off-premises losses, meaning damage to belongings kept in storage units will not be covered if it's caused by an excluded peril.

Understanding these exclusions is crucial before relying on your policy to protect items in storage. Common exclusions typically include:

• Flood damage: Water damage caused by natural flooding or rising groundwater is not covered.

• Earthquake: Damage resulting from earth movement requires separate earthquake coverage. 

• Pest infestations: Losses caused by rodents, vermin, bed bugs, cockroaches, and other insects are considered maintenance issues. 

• Mold or mildew: Gradual mold growth is generally excluded unless it results from a covered peril.  Wear and tear: Normal deterioration over time is not covered. 

• Negligence: Damage resulting from failure to properly secure or protect belongings may be denied. 

• Intentional acts: Losses caused intentionally by the policyholder are excluded.  War or nuclear hazards: These large-scale catastrophic risks are standard policy exclusions.

When to Get Additional Coverage for Your Storage Units?

Often, the 10% sub-limit can be inadequate, especially if you store expensive electronic appliances, furniture, jewelry, and other high-value items in your storage unit. If you want higher off-premises personal property coverage, you should consider additional coverage for your storage unit as follows.

• Scheduled Personal Property Endorsement: Allows you to individually insure high-value items such as jewelry, luxury watches, musical instruments, collectibles, or fine artwork stored in your unit for their full appraised value, bypassing standard sub-limits in your renters insurance policy.   

• Replacement Cost Rider: Upgrades your policy to reimburse you for the full cost of replacing damaged or stolen items at today’s prices rather than their depreciated value. For example, if a 3-year-old sofa stored in your unit is damaged by a covered peril, the rider would reimburse you at its current replacement cost; meaning a $5,000 sofa could be paid at $5,000 instead of a depreciated amount.

While considering adding these additional coverage/endorsements to your renters insurance policy can provide adequate coverage for items in your storage units, but for starters you need to purchase a standard renters insurance policy.

If it's your first time shopping for renters insurance, this detailed guide on How to Get Renters Insurance should help you learn the steps to obtain a policy with the required add-ons.

How to File a Claim for Your Storage Unit with Renters Insurance?

While filing a claim for your storage unit with renters insurance is a straightforward process, like making any other insurance claim, it is essential to provide accurate documentation and proof of ownership to strengthen your claim, especially as it's an off-premises incident.  

Here’s a step-by-step guide to help you properly file a claim and improve the chances of approval.

List Down Items/Belongings in the Storage Unit

Start by creating a detailed inventory of all items stored in your unit, clearly identifying those that were damaged or stolen. Include descriptions, estimated values, and purchase information if available, as this documentation will support your renters insurance claim and help verify the extent of your loss.

Report the Incident to the Police (if required)

If your personal belongings were stolen or damaged due to vandalism, report the incident to the police as soon as possible. Insurers typically require a police report to verify theft or other criminal activity before processing your claim.

Provide Evidence of the Damaged Items and Proof of Ownership

Submit clear evidence of the damaged or stolen items to support your claim. This may include photographs or videos of the damage, purchase receipts, credit card statements, warranty documents, appraisals, or any prior inventory records.

Providing detailed descriptions, including brand, model, purchase date, and estimated value, can help your insurer verify ownership and process your claim more efficiently.

Contact Your Insurer and File a Claim

After gathering the necessary documentation and evidence, initiate your claim through your insurer’s website, mobile app, or by contacting them directly by phone or email. You will be asked to provide details about the loss, including how it occurred, the items affected, and supporting documentation.

Once submitted, the insurer will review the claim to verify the circumstances of the loss and confirm that it resulted from a covered peril under your policy. If the claim is approved, your renters insurance will reimburse you for the covered loss, subject to your policy limits and deductible.

Track Your Claim

Monitor your claim status regularly until it is resolved and payment is issued. During the review process, your insurer may assign a claims adjuster who may request additional information or documentation to evaluate the loss and confirm that it resulted from a covered peril under your policy.

Promptly responding to these requests can help avoid delays in processing your claim. So, make sure to stay actively involved until your claim gets approved, and your insurer schedules the payout based on the policy terms.

What to Do if Your Storage Unit Claim on Renters Insurance Gets Denied?

If personal belongings in storage unit gets denied as the accident or event wasn’t a covered peril then there’s nothing you can do about it as renters insurance coverage is specifically limited to named perils listed in your policy.

However, if you believe your loss resulted from a covered peril and the claim was denied, consider taking the following steps:

• Request a written explanation: Contact your insurer to understand the specific reason for the denial. 
• Submit additional documentation: Provide any missing evidence, receipts, or supporting information that may strengthen your claim. 
• File a formal appeal: Ask your insurer to reassess the claim through their internal review process. 
• Contact your State Department of Insurance: If you believe the denial was improper, you may file a complaint for regulatory review.

If the investigation determines the insurer acted improperly or in bad faith, regulatory authorities may require corrective action or further review.

Keep in mind that if the damage resulted from an excluded peril, such as flooding or due to your negligence, such as failing to secure the storage unit, the denial may be upheld under the terms of your policy.

The Bottom Line: Should You Rely on Renters Insurance for Storage Units?

Renters insurance can provide valuable protection for belongings stored in a storage unit, but coverage is not unlimited. Off-premises protection is typically capped at 10% of your personal property limit and applies only to named perils listed in your policy.

If the value of your stored items falls within that limit and the risks concern covered events like theft or fire, renters insurance may be sufficient. However, if you are storing high-value belongings or require broader protection, additional coverage options may be necessary.

Before relying solely on your renters insurance policy, review your coverage limits, exclusions, and deductible to ensure your stored items are adequately protected.

If you need help purchasing a renters insurance policy with adequate personal property coverage, and any add-on coverage or endorsement, you can contact us for expert advice with a free quote.

Frequently Asked Questions (FAQs)

Can I use my renters insurance for my storage unit?

Yes, renters insurance typically covers belongings stored in a storage unit under off-premises coverage. However, protection is usually limited to about 10% of your personal property coverage and applies only to losses caused by covered perils, such as theft or fire. Your deductible and policy exclusions will still apply. 

What type of renters insurance to get for a storage unit?

You can typically rely on renters insurance, which provides off-premises coverage for items stored in a storage unit, usually up to 10% of your personal property limit. However, if you’re storing high-value items or need broader protection (such as flood coverage), you may consider a scheduled personal property endorsement, additional storage coverage, or a separate storage unit insurance policy. 

Does renters insurance cover theft from a storage unit?

Yes, renters insurance typically covers theft from a storage unit if theft is listed as a covered peril in your policy. However, coverage is usually limited to your off-premises sub-limit and subject to your deductible. 

Can I increase my renters insurance coverage for a storage unit?

Yes, you may increase protection by raising your personal property limit, adding a scheduled personal property endorsement, or purchasing additional storage coverage from your insurer. 

How much does renters insurance cover for storage units?

Most renters insurance policies cover storage units under off-premises coverage, typically capped at 10% of your total personal property limit. Some insurers may provide a minimum amount, such as $1,000. 

Does renters insurance cover water damage in a storage unit?

It may cover sudden and accidental water damage, such as from a burst pipe, but it does not cover flood damage caused by rising water or natural disasters.