If you're renting a storage unit for household belongings, business stock, furniture or electronics, you may be wondering: what kind of insurance do I need for my storage unit?
The answer depends on what your home policy, business policy and storage agreement already cover. Many assume their home insurance, their business insurance or the facility's own insurance automatically covers what's in the unit. Often it doesn't, or only in part.
This guide explains what storage insurance is, what it may and may not cover, and how to choose cover that suits what you're storing.
What is storage insurance?
Storage insurance protects the contents of your storage unit, not the building around it. If your goods suffer loss or damage that the policy covers, it pays up to the sum insured you chose, under the terms of the policy.
At SSIA, we arrange Goods in Storage insurance for household goods, personal effects and contents, including goods used in a small business, while they are stored at an SSIA approved self storage facility. The policy is in your name, as shown in your policy schedule. It does not cover the storage facility.
Why insure what's in your unit?
The facility doesn't insure your goods
One of the biggest misconceptions about self storage is that the facility is responsible for your belongings. Storage agreements commonly limit what the facility is responsible for, and a facility's own insurance is generally arranged for its own business. Read your agreement so you know where you stand.
Secure is not the same as insured
Cameras, alarms and access control reduce risk, but no facility can remove it. Accidents and unexpected events still happen. A lock protects access; insurance is what may pay if covered loss or damage occurs.
“It's just old stuff” can be an expensive assumption
It's easy to underestimate what's in a storage unit. Furniture, electronics, tools, sports gear and seasonal decorations add up. Replacing everything after a loss could cost far more than you expect, even for second-hand items.
Long-term storage needs a plan
Many people store items for months, sometimes years, without checking on them. Goods in Storage cover runs for the number of months you choose, up to a maximum of 12 months, and policies are not renewable. If you're storing for longer, take out a new policy for the extra time, starting from the date your first policy expires. You will be sent expiry emails in advance to help you plan, and it is still worth diarising when your cover ends.
Business goods matter too
If you keep business stock, tools or equipment in storage, a loss could interrupt your work. Goods in Storage cover can include goods used in a small business. See business stock in storage.
What does storage insurance cover?
Cover varies between policies, so always read the policy documents. 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. It applies while your goods are inside your locked storage unit or secured area at an SSIA approved facility.
If you make a claim that is accepted:
- 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
- the excess is $250 for each claim, as shown in your policy schedule
What storage insurance doesn't cover
It is worth knowing the exclusions before you move in, because some of the most talked-about storage risks 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.
- Mould, mildew, insects and vermin, along with wear and tear and gradual deterioration.
- Poor packing. Damage caused by packing that is not good enough to withstand normal storage is not covered.
- Unexplained loss. Loss, disappearance or shortage that cannot be explained is not covered.
- Theft by people close to you, meaning an immediate family member or your own employee.
- Goods on the move. Cover does not apply in transit, or while goods are being loaded or unloaded.
- Legal liability. The policy covers your goods. It does not cover legal liability of any kind.
This is a summary only. The Product Disclosure Statement (PDS) (PDF, opens in a new tab) sets out every exclusion.
What can you insure?
Goods in Storage insurance is designed for household goods, personal effects and contents, including those used in a small business. That can include:
- furniture and home appliances
- electronics and entertainment equipment
- clothing and personal items
- small business stock and office equipment
- tools
- collectibles and antiques (check the limits below)
Some items cannot be insured. They include motor vehicles and motorcycles, most boats, aircraft other than models and drones, flammable liquids and gases, chemicals, money and bullion, tobacco, most alcohol, paint, tyres in bulk and perishables.
Jewellery and watches can only be covered if each item is valued under $500 and the total is under $1,000. Paintings and artworks can only be covered if each item is valued under $2,500 and the total is under $10,000. The Target Market Determination (TMD) (PDF, opens in a new tab) has the full list.
Does home insurance cover storage units?
Some home contents policies offer limited cover for belongings kept away from home, usually with conditions and a lower limit. Before you rely on it, ask your home insurer:
- What is the 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?
For a side-by-side comparison, read self storage insurance vs home insurance.
What affects the cost?
Your premium depends on things like where your goods are kept, the security there, how much you insure them for and your insurance history. You can get a quote online through the SSIA portal.
How to choose the right cover
At SSIA, we believe you're the best judge of what protection your stored items need. These steps help:
- Take an inventory. List what you're storing, with photos, serial numbers and receipts where you have them. Keeping an accurate, itemised inventory is a condition of the policy.
- Check your facility is SSIA approved. Goods in Storage cover is only available at SSIA approved facilities.
- Read the PDS and TMD. They explain what is covered, what is not, and who the cover is designed for.
- Choose your sum insured and term. You decide how much to insure your goods for and how many months you need, up to 12 at a time. Make sure the sum insured is enough to repair or replace your goods.
- Answer the portal's questions accurately. Your answers affect your cover.
- Keep your inventory up to date. If you add or remove items, check your sum insured is still right and contact SSIA if your cover needs to change.
Simple ways to reduce your risk
Insurance is one layer of protection. Good storage habits are another, and packing well is also a policy condition.
- Use sturdy plastic tubs rather than cardboard boxes where you can.
- Keep items off the floor on pallets or shelving.
- Wrap electronics and fragile items with protective covers.
- Visit your unit from time to time to check for problems.
- Photograph what you store, and keep the photos with your inventory.
Choose your sum insured and months of cover
So, what kind of insurance do you need for your storage unit? Don't assume your belongings are covered by default. Check what your home policy and storage agreement say, and if there is a gap, consider cover designed for goods in storage. With Goods in Storage insurance, you choose the sum insured and the number of months. The PDS sets the terms, so read it and the TMD before you decide.
