(Limits, Rules & What to Know)
Many Utah homeowners find it convenient to use storage units or containers as they transition from one home to another. The question arises: will my current homeowners, townhome or renters’ policy cover my property while in storage?
In order to answer this question, I explored the ‘Contents Coverage’ forms from a few of our preferred companies to get a better idea of what the coverage looks like for contents stored in a storage unit or container. Safe to say, it is not what you would expect.
One company’s policy states: “We cover: (a) personal property owned or used by any insured anywhere in the world including property not permanently attached to or otherwise forming a part of realty.” Okay, great! You’re covered, right? Not so fast. Let’s read on. The next sentence says, “However, any personal property which is usually at any insured’s residence other than the residence premises is limited to 10% of the Coverage C Personal Property limit.” This company will include 10% of your policy’s personal property coverage limit stated on the declarations page. While that limit may provide enough coverage for your ‘stuff’ kept in storage, it is still something to keep in mind!
Another company’s policy form is similar: “Our limit of liability for personal property usually located at an “insured’s” residence, other than the “residence premises,” is 10% of the limit of liability for Coverage C.” Different company, same 10% limitation.
A third company, another preferred carrier, includes the same language as the first two: “10% of the Coverage C limit.”
The fourth and final company we are looking at includes the same 10% limit; however, the 10% limit does NOT apply to personal property if it is located in a self-storage facility. With that exception, you would have the full limit of contents coverage included on your policy for your ‘stuff’ in a storage unit.
What If I Keep the Storage Container On My Property?
If you store the container on your property, the 10% off-premises limitation would not apply.
Will Liability Extend to a Storage Unit?
Yes, standard homeowners policies will extend liability coverage to an off-premises storage unit. One example may be if your brother-in-law offers to help you move and is injured when boxes that are improperly stacked fall and break his leg. Another example may be damage to the storage unit or a neighboring storage unit owner’s property caused by a chemical spill or fire.
What Storage Unit Perils Are Not Covered?
Damage to your property by rodents or insects is not a covered peril. Storing property in airtight plastic containers and taking precautions to prevent damage from rodents are a few ways to prevent damage. Other perils typically excluded in homeowners policies that may cause damage in a storage unit are mold, mildew and rot, damage from an earthquake, and damage to property used in a business. Refer to your policy for a complete list of exclusions that apply to property in a storage unit. The storage facilities may sell a policy that includes limited rodent and water coverages, but be sure to read the fine print so you know what is covered.
At Anderson Insurance Group, we want our clients to have the knowledge of what is and isn’t covered while going through this housing transition. When in doubt, ALWAYS reach out to your agent to take a look at your specific policy and the coverages it includes. We are happy to help!
Five Things not covered by Homeowners Insurance | Anderson Insurance Group