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Does Homeowners Insurance Cover Storage Units? Facts & FAQ

Homeowners Insurance Policy

Homeowners insurance has a lot of moving parts, and understanding what is and isn’t covered can be confusing. So, what about storage units? Does your homeowners insurance policy cover the contents of your storage unit in the event of a fire, theft, or other damage? Read on to find out.

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What Is Homeowners Insurance?

Homeowners insurance is a type of insurance that protects the value of your property, as well as the people who inhabit it, from various types of losses. The most common types of homeowners insurance policies are fire and casualty insurance, hazard insurance, and property insurance, which includes coverage for additional living expenses in the case of a covered loss.

The primary coverage focuses on protecting your home and its contents from natural catastrophes, fires, and malicious acts, such as vandalism. Additional living expenses (sometimes referred to as loss of use) pay for the additional costs that may be incurred if your home is uninhabitable due to a covered peril, such as a flood or fire.

Like many types of insurance policies, homeowners insurance has a lot of moving parts, and understanding what is and isn’t covered can be confusing. So, what about storage units? Does your homeowners insurance policy cover storage units?

The short answer is that it depends, but most likely. Homeowners insurance policies typically have two types of coverage for personal belongings: Cash value or replacement cost.

home insurance claim form
Image By: emilie zhang, Shutterstock

Cash Value Policies

Cash value coverage takes into account the age and condition of your belongings when determining how much you would be reimbursed in the event of a loss. This means that if you have an antique piece of furniture that is damaged or destroyed, you would only receive the current market value for that item—not what it would cost to replace it.

Replacement Cost Policies

Replacement cost coverage, on the other hand, will reimburse you for the actual cost of replacing your belongings, regardless of their age or condition. So if you have a brand new computer that is destroyed in a fire, your insurance company will pay to replace it with a new one, no questions asked.

homeowners insurance
Image By: Andrey_Popov, Shutterstock

Homeowners Insurance and Storage Units

Most homeowners insurance policies will provide some level of replacement cost coverage for personal belongings. However, there may be limits on how much coverage is available for specific items, such as jewelry, art, or electronics. And in most cases, storage units are included in homeowners insurance policies.

You can find this under your off-premises coverage. This means that if something happens to your storage unit—like a fire or theft—your homeowners insurance will kick in and help pay to replace your belongings.

However, there are some things to keep in mind when it comes to storage units and homeowners insurance. First, most policies have limits on how much coverage is available for off-premises locations like storage units. This means that if you have a lot of expensive items in your storage unit, you may not be fully covered.

Second, the type of coverage you have for your storage unit contents may be different from the coverage you have for your personal belongings. For example, replacement cost coverage may not be available for storage units, or the limits may be lower than what is available for your home.

Finally, it is important to remember that homeowners insurance is designed to protect your dwelling and personal belongings—not your business. So if you are using a storage unit to store inventory for your business, you will need to purchase a separate commercial policy to insure those items.

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If you have any questions about whether or not your homeowners insurance policy covers storage units, the best thing to do is talk to your agent or company representative. They can help you understand what coverage is available and ensure you have the right policy to protect your belongings.

Featured Image Credit: Andrey_Popov, Shutterstock


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