Storage Insurance Tips to Help Protect Your Belongings

When you need to store your belongings in a storage facility, here are some storage insurance tips:

Photograph your belongings

When putting possessions into storage, be sure to take a photographic inventory of the items being placed into the storage area. This allows the insurance company to verify the existence and condition of any items in storage in case of a damage claim being filed. It is a good idea to keep a log of the value of the items in storage as well, especially if the insurance policy requires the insurance company to pay out according to replacement value and not original value minus depreciation.

Create an inventory

Take the time to create an inventory of all the belongings you have stored, and include clear descriptions. Include in the description of the goods an assessment of their condition, and note any damage that may already exist. In the event you need to file a claim, these descriptions and the photographs will help.

Notify your insurance company

Most larger insurance companies offer off-site storage at no extra cost if a person has a homeowners or renters insurance policy with the company. If not, the company will usually offer the extra coverage for a small monthly premium (which can be reduced in various ways, typically by raising the deductible on the policy). Insurance companies offer two ways to determine how much money is awarded in case of a claim: actual cash value, which subtracts depreciation from the original value of items, and replacement value, which does not count depreciation into the value of the items. Actual cash value policies have lower monthly premiums, while replacement value policies, and its higher premium, pay out more in case of a claim.

Get insurance through the facility

Another option is to ask the storage site company if they offer insurance when storage space is first booked. Usually they will offer a short-term (1 to 2 months) policy that will insure the property against damage from common sources such as fire, water, or smoke. Be sure to find out the maximum amount of coverage that they offer in relation to the value of the property your have stored. If you have $3000 worth of items that get damaged, but the facilities policies are only insured for forty percent of their value, only $1200 will be reimbursed to you to cover replacement costs. Also check with the company and find out if the policy can be updated as needed: adding or taking items out of storage can affect the types of coverage needed for the storage area.

Obtaining insurance for stored goods is a fairly simple process. Following these few storage insurance tips can simplify the process even more.