Mini Storage company wants proof of insurance. Do they have insurance from their Homeowner’s policy?
Key question: Are we talking property or liability?
If the question is about your property, because they want to sell you insurance for your property, the answer is that most HO policies provide 10% of your property limit for property away from your home, which of course your property in the storage unit would be.
If the question is about liability and the possibility that your activity in the storage unit could cause bodily injury or property damage, the answer is that your HO policy liability protection will cover your activity in the storage location, without any endorsement for the storage location. The answer is yes, there is no territorial restriction for the liability, and a temporary storage facility doesn’t need to be added as an additional location.
Apparently at issue is the desire on the part of the storage company to sell additional property insurance. They ask such enticing questions as:
- What is your deductible? They have a $100 deductible, vs. typical $500 or $1,00o on HO policy
- Does your coverage include damage from vermin? Most HO policies do not cover damage from squirrels or rats, i.e. ‘vermin.’
- Will a claim on your HO policy cause your rates to go up? There is the possibility once a claim is filed the renewal premium could go up, depending on the type and amount of the claim.
There must be some incentive on the part of the storage company to “sell the insurance” with the rental agreement.
This same client has a business insured with us, and some of the stored property may be from the business. Is there any coverage for the business property?
Most business policies have a specific extension of coverage for “Any Other Location,” which could range from $5,000 to $25,000, and often can be increased by endorsement. This coverage would apply to property in the mini storage location.
