What You Should Know About Off-premises Coverage

Your homeowner's insurance policy not only protects your home, but also your precious things in a storage unit. This is possible because homeowner's insurance comes with personal property coverage.

Personal property coverage provides protection to your belongings up to its limits. The items under the coverage normally include furniture, appliances, electronics, and clothes. According to the NAIC (National Association of Insurance Commissioners), this coverage may also include the things that are not within your residence, like those you store in a storage unit.

The protection for your contents in a storage unit is usually covered by the personal property coverage in your homeowner's insurance. The risks generally include vandalism, theft, lightning, and fire. Review what kind of risks your policy cover.

The cost of repair it replacement that your insurance company cover has a limit. Normally, it is up to 50% of the homeowner's policy limit. Let's say, your personal property coverage is $75,000 in your homeowner's policy, the off-premise coverage may likely be $7,500.

However, there are policies that have lower coverage limit for your items off-premises. Ask your insurance agent the amount of coverage you have for such contents.

Considering the amount of your off-premises coverage and its limitations, you need to determine the value of all the things you keep in the storage unit.

If the stored contents have greater value than your coverage, here are some options to take:

• Self Storage Insurance. You can find storage facilities that provide protection to your items through their insurance. But, they may ask for an additional payment for this, or it may be part of your contract with them, which in that case: part of the entire coverage amount.

• Scheduled Personal Property. Increase your coverage for items with higher value, by buying scheduled personal property coverage to protect such contents. For example, jewelry or art.

• Off-premises Coverage. If the cost of coverage for your stored contents is just part of your personal property coverage, consider increasing the limit of your coverage in your homeowner's insurance. What you can get is an increased coverage limit for your items that are located outside your home.

Make sure to read and understand your homeowner's insurance contract regarding the contents you place in a storage facility. Analyze if you need additional coverage for these belongings.

Your agent will tell you how your things may be covered if they are in a storage unit. Brad Spurgeon Insurance Agency has its clients as their first priority with affordable rates and clever policies. To learn more about how we can help you please contact our agency at (409) 945-4746​ or Click Here to request a free quote.