Personal Property in Storage

(Edited 1/9/2009)

Here’s a question we are asked often: “I have rented storage space at a self-storage facility. Are the stored belongings covered?” As usual, the answer is “maybe.” It depends on what’s being stored and how much it’s worth.

The Texas homeowners policy covers personal property owned, worn or used by an insured anywhere in the world. However, the amount of insurance on personal property while away from the residence premises is limited to 10 percent of the amount of insurance on Coverage B Personal Property, or $1000, whichever is greater.

Also, certain types of property are not covered at all while away from the residence premises, such as property related to a business, recreational motor vehicles (ATVs, snowmobiles), boats (including jet skis) and boat trailers.

In addition, the policy excludes theft of building materials and supplies while away from the residence premises.

The ISO homeowners policy also covers personal property owned, worn or used by an insured anywhere in the world. For property at another residence the limit is restricted to 10% or $1,000 whichever is greater of the Coverage C – Personal Property amount unless the reason for another residence is that the insured dwelling in untenantable. There is another extension granting coverage for 30 days if the insured is moving to a newly acquired principal residence. To increase the limit of Personal Property at another residence use HO 04 50 – Personal Property At Other Residences – Increased Limits. This endorsement would be used if the insured travels extensively, for their items at a hotel; when the student lives in a dormitory, while away at school; or, when there is a vacation home, and the insured wishes to increase the 10% limitation to pick up the value of the vacation home’s contents.

Also on the ISO policy, certain types of property are either limited or not covered while away from the residence premises, such as property related to a business, motor vehicles, watercraft and trailers and electronic apparatus while in a motor vehicle or primarily used in business.

Contact us for a complete review of your policies.

Re-printed with permission from Independent Insurance Agents of Texas. All rights reserved.