Self Storage Insurance vs Home Insurance: What’s Covered, What’s Not

When it comes to protecting your valuable belongings, insurance is non-negotiable. But here’s a common question many people face: Does home insurance cover items in self storage? Or do you need separate coverage like self storage insurance?

Understanding the difference between self storage insurance and home insurance is critical especially when your personal items are stored away from home. In this blog, we’ll break down the coverage differences, what’s included, what’s excluded, and why having the right insurance matters.

Whether you're downsizing, relocating, or simply need extra space, this guide will help you protect what matters most.

What is Self Storage Insurance?

Self storage insurance is a specialised policy designed to protect your belongings while they are stored in a storage facility. Unlike home insurance, which is focused on your primary residence, this type of policy specifically covers items kept in a secure, off-site storage unit.

It typically covers:

• Theft or burglary from the storage unit
• Fire or smoke damage
• Water damage (from burst pipes or storms)
• Vandalism or malicious damage
• Natural disasters (depending on the policy)

Reputable providers like SSIA offer self storage insurance that is tailored for individuals and businesses using storage units across Australia.

What Does Home Insurance Cover?

Traditional home insurance (including contents insurance) usually protects your belongings while they are kept within your home. It may include limited cover for items temporarily stored outside the home, but this is often subject to strict conditions.

In most cases, home insurance will not fully cover items stored in a storage unit, unless specific clauses or add-ons are included in your policy.

Limitations might include:

• Reduced coverage amounts
• Exclusions for theft or weather-related damage
• No coverage for long-term storage
• Lack of protection for business or commercial items

Key Differences: Self Storage Insurance vs Home Insurance

Why You Shouldn’t Rely Solely on Home Insurance

Many people assume their home insurance will extend to a storage unit, but this assumption can lead to major disappointment when damage or theft occurs.

Even if your home policy offers some protection, it may not:

• Cover the full value of stored items
• Include high-value goods like electronics, antiques, or tools
• Pay out if the storage unit is deemed “unsecure”
• Cover commercial or business-related items

With self storage insurance, you're getting protection specifically designed for the environment and risks of storage facilities.

What Self Storage Insurance Typically Covers

Every policy differs slightly, but here are common inclusions:

Theft & Burglary

Protect your belongings in case someone breaks into the unit.

Fire & Smoke Damage

Covers damage caused by fire outbreaks within or near the storage facility.

Storm & Flood Damage

Depending on your insurer, this may include damage from storms, hail, or floods.

Vandalism or Malicious Acts

If someone intentionally damages your stored goods, you're covered.

Accidental Water Damage

For example, if a nearby pipe bursts and damages your stored items.

What’s Not Covered by Self Storage Insurance?

As with any insurance, there are exclusions. These often include:

• Mould or mildew damage due to poor ventilation
• Wear and tear or gradual deterioration
• Illegal or prohibited goods
• Uninsured high-value items (unless declared)
• Items stored improperly (e.g., in non-waterproof containers)

Always read the Product Disclosure Statement (PDS) to understand exactly what is and isn’t covered under your self storage insurance policy.

Who Needs Self Storage Insurance?

You should consider self storage insurance if you are:

• Moving house and storing items short-term
• Renovating and need temporary storage
• Downsizing or relocating interstate
• Running a business and storing stock or tools
• Living overseas and leaving belongings in storage

Even if your storage unit is in a secure, CCTV-monitored facility, risks like fire, storm damage, and water leaks can still occur and they’re outside your control.

Tips for Choosing the Right Self Storage Insurance

1. Check with your storage provider – Some facilities offer in-house insurance or recommend trusted providers like SSIA.
2. Know the value of your items – Insure for replacement value, not just the purchase price.
3. Review the policy limits – Make sure the policy covers your specific belongings.
4. Understand excess and claims process – Know what you’ll need to pay out-of-pocket.
5. Ask about natural disaster coverage – Especially important in flood or fire-prone areas.

Conclusion

While home insurance is essential for protecting the contents of your house, it may not offer adequate protection for belongings stored elsewhere. That’s where self storage insurance comes in offering peace of mind for when your valuables are out of sight.

Don’t assume you’re covered. If your items are in a storage unit temporarily or long-term, dedicated self storage insurance ensures they’re protected against theft, fire, storm, and more.