In this guide, we’ll be discussing the importance of having the correct value of storage insurance in place for your items while in storage. It may seem obvious – but after far too many cases of customers realising too late that their storage insurance doesn’t cover the cost to replace or repair their stored items, we’re committed to helping understand how and why this element of your policy is so important.
Many people who use self-storage units take out basic insurance policies, assuming they’ll be adequately covered should something happen to their items while in storage. However, it’s common for customers to underestimate the value of the items they store.
If disaster strikes, this can leave you with insufficient compensation – leaving the value of your lost or damaged items completely irrecoverable. It’s for this reason that understanding your storage needs and ensuring you have the right level of insurance is crucial.
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Why Is Accurately Valuing Your Items So Important?
One of the biggest mistakes storage customers make is underestimating the value of their stored items.
Afterall, it’s easy to overlook how quickly the total value can add up when storing furniture, electronics, clothing, and sentimental items. In addition, two things you need to consider are:
– Hidden value: Items such as old electronics, sports equipment, or family heirlooms might be worth more than you initially thought. When it comes to things that simply cannot be replaced – such as photos, we often suggest considering whether these items may be better left at home.
– Replacement cost: In the event of theft, fire, or damage, the cost to replace your items may far exceed what you’ve covered under a minimal insurance policy. Make sure you add up the total value of everything you have in storage – if everything was to be destroyed, would your current policy cover it?
Take time to review the contents of your storage unit and accurately assess their current market value. A quick inventory can help you avoid significant financial loss if something goes wrong.
Understanding Minimum Insurance Policies
Basic insurance policies often cover the bare minimum, providing limited protection for your belongings. These policies may not be enough to cover the full value of your items if they are damaged or stolen.
It can be tempting to go for the bare minimum storage insurance policy – after all, everyone likes to keep costs down. However, anything you are paying for storage insurance is essentially rendered useless if it doesn’t actually cover your items.
Elements of your policy to look out for include:
– Low coverage limits: Many customers opt for low-cost policies that might only cover £1,000 to £2,000 worth of goods. However, this can be far below the actual value of what you’re storing – providing an accurate valuation is a must.
– Specific exclusions: Some policies may have exclusions, meaning they won’t cover certain high-value or fragile items, like jewellery, artwork, or antiques. If you are planning to store these types of items, be sure to check that your storage insurance policy will cover them.
Review the terms of your policy carefully to understand exactly what’s covered and what’s excluded. It may be worth considering additional coverage to ensure peace of mind.
How to Assess Your Storage Insurance Needs
To determine whether you have sufficient cover, it’s important to take an accurate inventory of your storage unit. Break down your stored items by category and estimate their value, keeping in mind how much it would cost to replace them today.
Steps to assess your needs:
– Create an inventory: List out everything in your storage unit, including furniture, appliances, clothing, and valuables. Read up on our packing tips for storage to find a useful way to organise your boxes.
– Estimate replacement value: Calculate the total cost to replace these items.
– Consider high-value items: Pay special attention to valuables, electronics, or specialised equipment, which often need higher levels of cover – or may not be covered in certain policies.
This process ensures you’ll have a better understanding of the total value of your belongings and allows you to select the right level of insurance. Make sure you’re also aware of what you shouldn’t have in your storage unit!
Commonly Overlooked Items
It’s easy to forget how valuable certain stored items can be, especially if they’re out of sight. Many storage users may neglect to cover items such as:
– Seasonal equipment: Items like bicycles, skiing equipment, or gardening tools can add significant value, and are items that not all storage insurance policies will cover as standard.
– Family heirlooms: Furniture or inherited items may have emotional and monetary value, which often cannot be replaced if damaged or lost. These items are something that you may want to consider leaving out of your storage unit altogether.
– Business inventory: For those using storage for business purposes, stock or office equipment may exceed the coverage limit on a basic policy.
By taking stock of these overlooked items, you can ensure you have adequate coverage to replace everything if needed.
Many storage customers unknowingly put themselves at risk by opting for the minimum insurance coverage, leaving their valuable items underinsured.
It’s essential to take the time to assess the true value of your belongings and ensure your policy provides adequate protection. Doing so will give you peace of mind knowing that if something unfortunate happens, you’ll be fully covered.
For more information on comprehensive storage insurance policies, explore our self-storage insurance options below:
