It is important to know and understand how critical insurance is when renting a storage unit. You may be renting a storage unit for your own personal use, business inventory or maybe you are in-between houses and just needed a temporary storage unit. Storage units can be used long term for all those seasonal items and for large items like caravan and boat storage. Some people even make use of storage facilities whilst renovating their homes.
Cedar Storage is located in Randburg, conveniently close to Fourways, Bryanston and Sandton. We offer a range of storage units in our storage facility. When renting a storage unit just like other storage facilities, there is always that fine print that nobody ever wants to read. What you will find in the fine print when renting a storage unit, is that the monthly rental, does not include insurance. Carry on reading and we will guide you through everything you need to know about storage facility insurance. That way, you wont get left in the dark and you will all the information you need to make an informed decision.
Why is storage insurance important?
Protection against unforeseen events
Our storage facility is safe and secure. Although we provide a very effective security system, CCTV video cameras, laser beams, electric fence and armed response, we may not be held liable for loss, damage, fire or theft of goods (please refer to our T&C’s.). The same applies to most of the storage facilities in Fourways, Randburg and outlying areas in Johannesburg.
Although these storage facilities are designed and built to be safe and secure, unforeseen events can occur. You could lose the contents of your storage unit from a natural disaster, theft, fire and water damage. Whilst this is rarely the case, the consequences can be devastating. Especially if you are storing valuable items that can’t be replaced easily. Don’t be left at a loss because of the small print that you were unaware of.
Limited liability of storage facilities
We cannot stress that storage facilities, including Cedar Storage, do limit their liability incase of any damage or loss. This means that if anything were to happen to the contents of your storage unit, we would not be responsible for replacing any of the items. This is why insurance is essential.
Peace of mind
By having your storage unit insured, you will be gaining peace of mind. No matter what you store, whether it is seasonal items, collectables, business documents, bikes, cars or even that rust old exercise bike, you will be covered. If your valuable are covered, you will have peace of mind, allowing you to focus on what’s important in your life.
Types of storage insurance coverage
When considering storage unit insurance, it’s essential to understand the different types of cover available:
Comprehensive insurance cover
This is probably the most common type of insurance for storage units. It does typically covers for loss due to theft, fire, water damage, vandalism and other natural disasters. This type of insurance is perfect if you are storing valuables or items that are irreplaceable.
Named perils insurance cover
Perils Insurance is more specific as it only covers the risks mentioned in the policy. This means that if you specified fire and theft in your insurance policy and your storage unit got flooded. The damage cause by the water leak would not be covered. This type of insurance cover wil work for those who want to save a quick buck by specifying the type of coverage and still getting protection against certain risks.
Replacement cost versus actual cash value
When choosing an insurance policy for your storage unit contents, you will come across two types of reimbursement:
- Replacement Cost
- Actual Cash Value
Replacement cost will cover you the cost of replacing the item that was damaged or stolen. Cash value, will cover you for the actual value of the item at market value, taking into consideration depreciation. Replacement coverage will tend to be more expensive, however it does give you a more comprehensive cover.
How to get storage insurance
Homeowners or renters insurance
You will find that many insurance companies will cover belongings stored off-site or away from your home. It is very important to ask your broker questions and get the right answers to avoid disappointment. You will most likely have to specify your items and the location of the storage facility. Your insurance company is most like going to ask questions about the storage facility security ie is there an electric fence. Does the storage facility have a guard? When you read the fine print, just be aware of what types of damage that won’t be covered.
Standalone storage insurance
If your insurance company does not cover your items in your off-site storage unit, you may want to look at s standalone storage insurance option. Standalone storage insurance policies are designed for your specific needs. They can also be purchase through many insurance brokers.
Insurance through the storage facility
You may find that some insurance companies offer insurance as an add-on service. Cedar Storage does not offer the insurance. Speak to our friendly staff so that we may guide you or point you in the right direction to find the insurance company that best suits you.
Factors to consider when choosing storage unit insurance
Value of stored items
Make a list of all the items you would like insured and estimate their value. Do this before taking out any insurance policies. This will help you determine how much cover you will need. Some items, like family heirlooms or antiques, can be difficult to value. We suggest getting a professional to appraise them.
Coverage limits and deductibles
When trying to decide on which insurance company to go for and you are finished comparing apples with apples, pay close attention to limits and deductibles.
When comparing insurance policies, pay close attention to the coverage limits and deductibles. The coverage limit is the maximum amount the insurance company will pay in case of a loss, while the deductible is the amount you’ll need to pay out of pocket before the insurance kicks in. Higher coverage limits and lower deductibles generally result in higher premiums, so it’s important to find a balance that works for your budget.
Exclusions and conditions
When on the lookout for an insurance company, be sure to read the exclusions and conditions in the small print. This part of the poly will outline what is covered or under what circumstances cover may not apply. You will find that many policies will not cover damage cause by pests, mould or items that have not been stored correctly. Just to be sure, ask questions and read the fine print if you are not sure of anything.
Policy duration
Choose cover for as long as you need. You will find that policies can also be flexible. Policies can be taken out for a few months or even several years. Just make sure that your policy meets that duration of all your storage requirements.
Common misconceptions about storage insurance
“My belongings aren’t valuable enough to insure.”
If you’re storing items that you don’t consider to be of high value, the cost to replace them can add up very quickly. Items like furniture, electronics, and even clothing can be expensive to replace. This is when insurance will work for you and may be the worthwhile and wisest investment choice.
“The storage facility will cover any damage.”
As mentioned earlier, storage facilities typically limit their liability. At Cedar Storage, like many other storage facilities in Randburg and Fourways, we do not automatically include insurance in our rental fees. Do not assume that the storage facility you choose includes insurance cover, as this will leave your valuable unprotected and you out of pocket.
“I only need insurance if I’m storing for a long time.”
Accidents can happen at any time, regardless of how long your items are being stored in a storage facility. Whether you’re storing items for a month or a year, insurance policies will provide much need valuable protection and peace of mind..
Conclusion
Be informed and have all the information you need. Consider storage facility insurance when renting a storage unit. At Cedar Storage, we prioritise the safety and security of your belongings, however we also recognise that unforeseen events can occur. By taking out an insurance policy to protect your valuables, you will be limiting the risks like theft, fire, and water damage.
If you have any questions about storage insurance or need recommendations for insurance companies, contact us. We’re here to help you make the best decision for your storage needs.
Book your storage unit on-line or Call: 011 875 2233.
