A storage unit can help with short or long-term needs, whether you're moving, downsizing or just need more space. But many people assume that once their belongings are in storage, they're completely protected. Even well-run facilities come with certain risks.
Before you hand over your personal or business items, it helps to understand what could affect them. At SSIA, we arrange insurance for goods in storage, and we'd like everyone storing goods to make informed decisions.
This guide covers the main risks of using a storage facility, how to reduce them, and where insurance does and doesn't help.
1. Theft and unauthorised access
Even high-security storage facilities are not completely immune to theft. Most use access controls such as keypad entry, CCTV and fencing, but break-ins can still happen, especially where supervision is limited or security systems are out of date.
How to reduce your risk
- Choose a facility with CCTV, individual access codes and good lighting.
- Avoid facilities that use shared or easily copied keys or gate codes.
- Use a good-quality lock on your unit.
- Don't label boxes with tempting descriptions like "jewellery" or "electronics".
Theft following forcible entry is one of the insured events listed in the Goods in Storage policy schedule, and your own schedule confirms your cover. Theft by an immediate family member or your own employee, and any loss or disappearance that cannot be explained, are not covered by Goods in Storage insurance. Keeping an accurate inventory helps show what was in your unit.
2. Fire and water damage
A fire can destroy belongings quickly, and household goods, paper and fabrics burn easily. Water is a risk too: leaks, storms and poor drainage can let water in, and poor ventilation can cause moisture to build up.
How to reduce your risk
- Look for a facility with fire alarms, sprinklers and fire-resistant construction.
- Store items off the floor on pallets or shelving, and use sealed plastic tubs rather than cardboard.
- Never store flammable liquids, gas or chemicals. They are dangerous, and they can't be insured.
The insured events listed in the Goods in Storage policy schedule include fire, rainwater, and storm or tempest, and your own schedule confirms your cover. Rainwater is not flood. Flood, meaning water that has escaped from a river, creek, lake, dam, reservoir or canal, is not covered by Goods in Storage insurance. If a facility is in a flood-prone area, keep that in mind when you choose where to store.
3. Mould and pests
Mould and pests are slow, quiet problems. In a poorly maintained facility, rodents, insects and mildew can damage furniture, clothing, paperwork and electronics, especially over long-term storage.
What to look out for
- units with poor ventilation, damp smells or visible water marks
- no sign of regular pest control
- dirty common areas and overflowing bins nearby
How to reduce your risk
- Don't store perishables, or scented items such as candles and soap, which attract pests.
- Use sealed, hard plastic tubs rather than cardboard boxes.
- Wrap soft furnishings in breathable covers so moisture isn't trapped.
- Visit your unit from time to time to check for problems.
Prevention matters most here. Goods in Storage insurance does not cover damage caused by mould, mildew, insects or vermin, or gradual deterioration.
4. Gaps in your insurance
Many people assume their home or business insurance automatically covers items at a storage facility. Often it doesn't, or the cover is limited. The facility's own insurance is generally arranged for its own business, not for the goods inside your unit.
If something goes wrong, you could be left paying to repair or replace your belongings.
How to protect yourself
- Ask your home or business insurer what is covered for goods kept away from your premises.
- Read your storage agreement to see what the facility is, and isn't, responsible for.
- Keep an up-to-date inventory of stored items, with photos and receipts.
- Consider cover designed for goods in storage.
We arrange Goods in Storage insurance for household goods, personal effects and small business contents at SSIA approved facilities. It 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 schedule confirms your cover. Cover applies while your goods are inside your locked unit. It does not cover goods in transit, or while they are being loaded or unloaded. For a side-by-side comparison, read self storage insurance vs home insurance.
5. Poor maintenance
Not all storage facilities are equal. Some may cut corners on maintenance, cleaning and security, which exposes your items to unnecessary risk.
Warning signs
- cracks in walls or floors
- leaking roofs or gutters
- poor lighting in corridors
- little sign of staff checking the site
It's also worth knowing that the policy expects you to play your part. Taking reasonable care of your goods, and packing them to withstand normal storage, are conditions of Goods in Storage insurance. Damage caused by poor packing is not covered.
6. Access restrictions
Imagine needing something urgently, only to find the facility is closed. Some facilities have limited access hours or need notice before you can collect your items.
Questions to ask
- What are the access hours?
- Can you drive up to your unit?
- Are staff available to help during business hours?
Flexible access matters most for business owners and people with changing schedules.
7. Documents and valuables
For businesses storing records or client files, security means more than locks and CCTV. Sensitive documents need protection from damage and unauthorised access.
Good practice
- Use lockable filing cabinets or a safe inside your unit.
- Avoid storing original copies of sensitive documents unless you need to.
- Consider a climate-controlled unit for paper records.
Some valuables can't be insured under Goods in Storage insurance at all, including money, deeds, securities, precious stones and bullion. Jewellery, watches and artworks can only be covered below set values. The Target Market Determination (TMD) (PDF, opens in a new tab) has the full list.
Take an inventory before you lock up
Before you lock your unit, take a few minutes to record what you're storing:
- photograph valuable or fragile items
- keep a list of contents by box
- save receipts or proof of purchase for larger items
Keeping an accurate, itemised inventory is a condition of Goods in Storage insurance. It also helps you choose a sum insured that is enough to repair or replace your goods, and it makes a claim easier to prepare if something does go wrong. See what to do if you need to claim.
Why choosing the right facility matters
Choosing a storage facility isn't just about the cheapest option. It's about balancing cost with:
- security
- climate control
- maintenance standards
- access
- reputation
Before you sign a storage agreement, inspect the site, ask questions and read reviews. If you plan to insure your goods with Goods in Storage insurance, check the facility is SSIA approved.
Stay informed
Storing your personal or business belongings should give you freedom, not anxiety. Understanding the risks, choosing a well-run facility and checking your insurance are three steps you can take before you move in.
Not sure where you stand? Check whether your storage unit is insured, then read the Product Disclosure Statement (PDS) (PDF, opens in a new tab) to see exactly what is and isn't covered.
