Self-storage is a fast-growing sector of commercial real estate, and people may store things for any variety of reasons: in between moves, to declutter their home, to put away items when children move out, and more. One significant purpose for a storage unit includes protecting belongings from a disaster. The threat of a home fire or a natural weather event may lead people to temporarily put their belongings in storage or even for the long-term while they readjust or find new living situations. However, this isn’t to say that storage units cannot experience disasters themselves. Fires, theft, or flooding, can just as well harm a storage facility property — leaving your items at risk if they are stored there unprotected.

The solution to this is storage unit insurance. Storage unit insurance is what protects your belongings, even when they’re not in your possession. Do storage units need insurance? Read on to discover why the answer is yes, plus what insurance storage units offer, what insurance covers, and what insurance you’ll need to protect your belongings best. 

The Cost of a Storage Unit

When you purchase a storage unit, the cost you pay per month is solely for access to the facility and your designated space alone. Many prospective customers may assume that a storage unit’s cost alone protects their belongings, but that is not always the case. The cost of a storage unit in itself helps explain the price of storage insurance. Standard self-storage facility rates generally run between $60 and $180 per month, while climate-controlled storage units are $75 to $225. Of course, a storage unit’s cost depends on many factors. The unit’s size, location of the facility, stored goods, and add-on features such as climate control, security measures, and trash access contribute to the bottom line. 

Storage Unit Insurance: Tenant Insurance

Storage unit insurance is often referred to by the more generalized name tenant or renters insurance. Tenant insurance covers property inside a storage unit, though the name also covers things like property kept in a rental unit like an apartment. This form of insurance protects in instances of theft, damage, or loss. Tenant insurance focuses on storage unit items is not the most common form of insurance. Still, storage facilities will usually have access to a tenant insurance program so that self-storage users can purchase insurance on-site.

What Storage Unit Insurance Covers

Storage units usually have their insurance for building protection and then offer a separate insurance form for unit renters. Storage facilities’ insurance will cover the building itself in cases of damage and may extend to some form of coverage for renters — though usually not. You can think of it as how apartment complexes have insurance against fire and acts of God on the building but aren’t responsible for tenants’ individual property.

Storage units will then offer insurance for the renters. Storage units often provide access to their policy or have connections to a third-party specialty insurer. As with any other insurance policy, it’s best to read the fine print and see what’s covered before signing anything. Some policies will leave out the biggest culprits of storage unit content damage, like water and smoke damage caused by natural disasters. You’ll want to make sure that your coverage adequately protects your items, especially for items sensitive to temperature and humidity, which may require extra protection.

How Much is Storage Unit Insurance

Storage unit-specific insurance usually costs between $10 per month and $50 per month, covering up to $10,000 of belongings. For larger amounts of coverage over $50,000, you’re looking at $200+ per month in insurance fees.

However, you may already have storage unit insurance, even if you’re not aware of it. Many homeowners’ and renters’ policies will automatically cover personal items stored in storage units or facilities under the same protection covering their belongings at-home.

With that said, a cheaper storage unit-specific policy may offer more efficient coverage than an existing homeowners’ or renters policy. Some of them provide a higher percentage of coverage than their cost, and then all of the money is specifically for storage unit items. Additionally, homeowners’ or renters’ policies often offer protection for storage items up to a percentage of the policy’s total coverage limit — which may not protect all of your things.