The Australian self-storage industry is growing strongly. There were an estimated 1,506 storage facilities operating in 2021 (plus nearly 500 in New Zealand), with millions of square metres dedicated to storage. Australian businesses use managed and self-storage facilities for all kinds of reasons. From storing seasonal equipment to managing inventory, storage units are often a better solution than on-site storage. But what happens when something goes wrong, and your items in storage are stolen, damaged or lost?Without storage unit insurance, you will almost certainly be out of pocket and out of action until you replace the equipment.
Keep your contents insured with affordable storage insurance
There’s a saying in the insurance industry: “if it’s worth storing, it’s worth insuring”.Whether you are storing excess furniture during an office move, locking machinery away for months, or using a self-storage unit as overflow, storage unit insurance protects the value of your goods in storage.Some self-storage facilities require their clients to have storage unit insurance. They may even offer a policy.But we have another saying at Connect Business Insurance: “if it’s worth insuring, it’s worth getting the best insurance”.Keep reading to learn all about storage unit insurance, including:
- What it covers
- Who benefits from storage insurance
- How to find the best policy
Why take out storage unit insurance?
Storage facilities are notoriously secure. But on the off chance something does happen, and your equipment is damaged, stolen or lost, storage insurance is your shortcut to replacing the items without stress.Private individuals often have storage insurance bundled into home and contents insurance. For example, some renter’s insurance policies define a portion of the total insured value for storage unit insurance. Typically this is around 10%. So if the total insured amount is $100,000, the renter is covered for items in storage worth $10,000.
What does storage insurance cover?
Storage unit insurance provides peace of mind and financial protection if anything happens to your equipment or the storage facility.
- Theft: Replacement cover for insured equipment stolen from a locked storage unit.
- Natural disaster: Fire, flood or other natural disaster cover.
- Accidental damage: Storage insurance covers repair costs when a break-in or natural event causes damage.
There are limitations to the situations your storage unit insurance will cover.For example, mould and smoke damage may not appear. You should always read the PDS and speak to an insurance specialist to understand your policy in detail before signing on the dotted line.
Equipment your policy covers
Keeping excess equipment and inventory in storage is often more affordable and workable than on-site storage.But not everything is automatically covered by storage unit insurance. There may be exclusions and coverage limits, which you can discuss with your insurance expert.In general, your insurance might not cover:
- Vehicles, including boats and aircraft
- Highly flammable goods
- Valuable items like jewellery and precious stones, unless specified in the policy
- Items over $1,000 unless specified in the policy
These are the typical exclusions to standard storage unit insurance policies. However, the Connect Business Insurance team would be happy to discuss your individual requirements.For example, we may be able to cover high-value items or goods with a total value that exceeds the standard policies. We can also combine insurance cover into a single, simplified policy, including commercial vehicle insurance, aircraft insurance (aviation insurance) or plant and equipment insurance.
Who needs storage unit insurance?
The short (and perhaps obvious) answer is that any business using a storage unit should have insurance.You can’t watch over your equipment all hours of the day and night. Even if you could, you would not be able to stop a fire, flash flood or cyclone from damaging your unit.So neglecting to insure your storage unit is not only a financial risk. You are also exposing yourself to unnecessary stress, sleepless nights and frustration if something does happen.
Where to find affordable storage unit insurance
Any reputable Australian storage provider requires you to have storage unit insurance.Most will offer insurance through their own offices or by partnering with an Australian insurance provider.But like most business insurance policies, details make all the difference.Connect Business Insurance specialises in tailored, comprehensive insurance policies for Australian businesses. Although there are many ways to access storage unit insurance, combined cover under a custom insurance policy means peace of mind and confidence that everything important is covered.
Combined contents insurance and storage insurance
Homeowners and renters may access storage unit insurance through their home and contents insurance policy.While this is good to know, it is not readily applicable to businesses.
Plant and equipment insurance
Insuring your tools, mobile equipment and mission-critical machinery is a smart move.Connect Business Insurance can tailor a policy that combines plant and equipment insurance with storage unit insurance, giving you peace of mind no matter where you keep equipment.
Standalone storage unit insurance
We understand that you might need dedicated storage unit insurance without the benefits of combined cover.This is useful in situations like:
- Short-term storage while you relocate
- Storing equipment while you take a break from running your business
- Purchasing and storing equipment before you are ready to start a business
In those cases, standalone storage insurance may be more cost-effective than combining it with cover you don’t need.
Our top tip for storage unit insurance: check your policy carefully!
If it’s worth storing, it’s worth insuring.And if it’s worth insuring, it’s worth getting the best insurance.The best storage unit insurance is the policy tailored to your requirements and priced competitively.Storage facilities may encourage you to choose their insurance policy for convenience. But we recommend sourcing at least two or three additional insurance quotes to ensure you are getting the best cover at the best price.
Enquire online for a storage unit insurance policy quote
At Connect Business Insurance, our insurance team works hard to tailor policies to your needs. So rather than settling for cover that’s only acceptable, contact us for the best storage unit insurance at the best prices.