If you keep belongings in a storage unit, a common question comes up sooner or later: does my home insurance cover items in self storage, or do I need separate cover?
The answer depends on your home policy, and the gap is often bigger than people expect. This guide explains the difference between home contents insurance and self storage insurance, what each may cover, what is usually excluded, and what to check before you rely on either.
Whether you're downsizing, moving house, renovating or simply need extra space, it will help you decide how to protect what you've stored.
What is self storage insurance?
Self storage insurance is cover for your belongings while they are kept in a storage facility. Home contents insurance is built around the place you live. Self storage insurance is built around the unit where your goods are kept.
SSIA arranges Goods in Storage insurance for household goods, personal effects and contents, including goods you use in a small business, while they are stored at an SSIA approved self storage facility. Cover is for the insured events listed in the policy schedule, set out below.
You apply online, choose how much to insure your goods for, and choose how many months of cover you need, up to 12 months at a time.
What does home insurance cover?
Home contents insurance usually protects your belongings while they are inside your home. Some policies include limited cover for items kept somewhere else for a while, but this is often subject to conditions.
Every home policy is different, so read yours. For goods kept in a storage unit, common limitations may include:
- a lower limit for items kept away from your home
- conditions about where, and for how long, items are stored
- fewer insured events once items leave your home
- little or no cover for business goods
Three common assumptions
“The storage facility covers my goods”
Usually not. Storage agreements commonly limit what the facility is responsible for, and a facility's own insurance is generally arranged for its own business. Check your storage agreement to see what, if anything, it says about your goods.
“My home policy will stretch to cover it”
It might, partly. Once your belongings leave your home, even for a short time, your home policy may cover them for less, or not at all. If you're not sure, ask your home insurer in writing:
- Is there a limit for items stored away from my home?
- Which events are covered for stored items, and which are excluded?
- Does the storage location need to be listed on my policy?
“It's just old stuff”
People often store things they think are not worth much: spare furniture, seasonal clothing, tools, boxes of keepsakes. Add up what it would cost to replace them all and the total can be surprising. Sentimental value and financial value are two different things, and insurance can only help with the financial loss, up to the limits of your policy.
Key differences at a glance
Scroll sideways to compare.
| Home contents insurance | Goods in Storage insurance | |
|---|---|---|
| Where goods are covered | Mainly inside your home. Cover away from home, if any, may be limited. | Inside your locked storage unit or secured area at an SSIA approved facility. |
| Insured events | Set by your home policy. | The insured events listed in the policy schedule, including accidental damage, fire, storm or tempest, and theft following forcible entry. The full list is below. |
| Business goods | Often limited or excluded. | Goods used in a small business can be included. |
| How long | Runs with your home policy. | A number of months you choose, up to a maximum of 12 months. Policies are not renewable, so for longer storage you take out a new policy. |
| How much | Limits for stored items may be lower than your main contents cover. | You choose the sum insured. Make sure it is enough to repair or replace your goods. |
| Whose policy | Yours, for your home. | Yours. The policy is in your name, not the facility's. |
| Goods in transit | Depends on your policy. | Not covered, including while goods are being loaded or unloaded. |
Why home insurance alone may not be enough
Even if your home policy offers some protection for stored items, it may not:
- have a high enough limit for everything you have stored
- cover higher-value items, such as electronics or tools, without a low limit per item
- apply to long-term storage, or to every storage location
- cover goods you use in a business
Cover designed for goods in storage starts from where your belongings actually are: in a unit, away from home, sometimes for months at a time.
What self storage insurance may cover
Every policy is different. Goods in Storage insurance covers physical loss or damage directly caused by the insured events listed in the policy schedule: accidental damage, fire, lightning, impact, explosion, earthquake, tsunami, aircraft, riots and strikes, malicious damage, rainwater, storm or tempest, and theft following forcible entry. Your own policy schedule confirms your cover, and the Product Disclosure Statement (PDS) (PDF, opens in a new tab) explains how the cover works. Read both before you decide.
A few details are worth knowing up front:
- Settlement. Items you list individually are settled at the value agreed and shown in your schedule. Other items are settled at their market value immediately before the loss, not new for old.
- Excess. The excess is $250 for each claim, as shown in your policy schedule.
- Location. Cover applies while your goods are inside your locked storage unit or secured area at the facility shown in your schedule.
What's not covered
Some causes of loss are not covered. Under Goods in Storage insurance, these include:
- flood, meaning water that has escaped from a river, creek, lake, dam, reservoir or canal (rainwater is one of the insured events, but rainwater is not flood)
- wear and tear, gradual deterioration, and damage caused by mould, mildew, insects or vermin
- damage caused by packing that is not good enough to withstand normal storage
- loss or disappearance that cannot be explained
- theft by an immediate family member or your own employee
- goods in transit, or while they are being loaded into or unloaded from your unit
Some items cannot be insured at all, including vehicles, fuel and chemicals, cash and bullion, perishables, and jewellery or artwork above set values. This is a summary only. The PDS and the Target Market Determination (TMD) (PDF, opens in a new tab) have the full lists.
Who should consider self storage insurance?
It is worth thinking about cover for stored goods if you are:
- moving house and storing items in between
- renovating and need somewhere to keep furniture for a while
- downsizing or relocating interstate
- running a small business and keeping stock or tools in storage (see business stock in storage)
- living or travelling overseas and leaving belongings behind
Even in a secure facility with cameras and gated access, accidents and unexpected events can still happen, and many of them are outside your control.
Tips for choosing cover
- Check your facility is SSIA approved. Goods in Storage cover is only available for goods stored at an SSIA approved facility.
- Make an inventory. List what you're storing, with photos and receipts where you have them. Keeping an accurate, itemised inventory is a condition of the policy.
- Choose a sum insured that is enough. It is up to you to choose a sum insured that would repair or replace your goods.
- Pack for storage. Use sturdy containers and pack items to withstand normal storage conditions. Damage caused by poor packing is not covered.
- Understand the excess and how claims work. Under Goods in Storage insurance, the excess is $250 for each claim, as shown in your policy schedule. Claims go directly to the Claims Department named in the PDS, and you do not need to contact SSIA first. Our guide to making a claim explains what to do if something happens.
- Read the PDS and TMD. Together they explain what is covered, what is not, and who the cover is designed for.
The bottom line
Home insurance is built to protect the contents of your home. It may not offer enough protection for belongings kept somewhere else. Don't assume you're covered: check your home policy, check your storage agreement, and if there is a gap, consider cover designed for goods in storage.
At SSIA, we believe you're the best judge of what protection your stored items need. If you're still unsure where you stand, check whether your storage unit is insured or read how storage unit insurance works.
