Insurance Policies for Your Storage Facility
By USInsurance.com Staff
When storing your belongings in a storage facility, a reputable agent will insist that you have insurance for your belongings. In general, facilities offer liability insurance that is included with the rental charge or a minimal insurance policy at approximately $0.30 per pound per item. However, these policies offer very little protection against damage. For example: the replacement value on a 20 pound television set will be more than the $6.00 covered by the insurance policy i.e. 20 X $0.30 = $6.00. At the end of the day, this isn't that much coverage for a TV that likely cost you over 100 dollars. Warehouse operators who do offer extra insurance may require that you accept their insurance coverage if you want to store your goods with them. Others offer you several options with outside insurance companies with competitive rates due to the bulk discount they receive.
For a comprehensive insurance, you may want to seek an alternative coverage such as through your homeowner’s insurance policy. These polices can give you the maximum amount of coverage, as well as protect your household goods from unforeseen damage. Or you may even seek a combination of the two (storage and homeowner's). However, you will have to check with both providers, especially pertaining to unique aspects of storage such as the option to add or remove items at your leisure. You do not want to find out that your antique sideboard that was recently damaged was not covered by insurance. The bottom line is that you absolutely need to have your goods insured.
Choose Insurance that Covers the Entire Value of your Goods:
If you decide to take out extra optional insurance against negligent loss or damage to your goods you will need to have adequate coverage. For example: if you have a $20,000 dining room set insured for 20 percent of its value you will receive only $4,000 in the unfortunate event it becomes damaged beyond repair while in storage. If you have $100,000 worth of goods in storage and they are insured to $20,000, you will receive one fifth of the value of each item in the event it becomes damaged beyond repair. Damage such as moisture damage due to high humidity levels or due to vermin may not be included in a standard homeowner's policy. For these concerns, you may want to use a policy through a storage company.
Learn Insurance Policy Terms:
Some homeowner’s insurance policies do cover household goods while in transit. Check with your insurance company to find out what coverage you may have and be sure to check out when this ends. If the policy is void once you close on your old home it may be of little use to you as this is most likely when you will be moving and will need storage. If you are fortunate enough to have coverage make sure you contact the insurance company and ask them to explain the level of coverage and what exactly is covered. In the event you need to file a claim with the insurance company you will need to prove that the loss or damage is due to the mover’s negligence or if you are packing up the goods yourself and renting out a truck you will need to prove negligence on the part of the truck rental company. No money will be paid out due to any items damaged due to poor packing by you or your family.
Insurance While in Transit:
If you are planning on renting a truck and driving your goods to the warehouse you will most likely be working with a trucking company and may need additional insurance. Using a full and self service moving company to transport your items generally has the better rates than a "You Load We Haul" alternative or a self service move; however this might not be a financially viable option for you. When driving yourself, you find out if your auto insurance policy protects you while on the road or how much extra it will cost to insure you and the truck. Also, check to find out if roadside assistance is provided by the company renting the truck, which may also offer coverage if you are in another vehicle.
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