A regular question from some of our charter school clients has to do with insuring items that are held inside a storage unit. Many charter schools have excess property they don’t want to keep on-premises, so they will rent a storage unit off-site temporarily or permanently.

What happens if the storage unit is broken into or destroyed? Do you know if your insurance company will pay for the items located there? Whether or not your property is covered depends upon your property insurance policy.

Insuring a Storage Unit Properly

When we see problems with property claims stemming from a storage unit, it is usually because the insurance agent was unaware the storage unit existed. The school didn’t know it needed to notify its agent of the location.   A storage unit should be considered as if it were another location for the school, and the value of the property inside should be added to the policy.

With a location address and limit listed on the policy, you can eliminate any claims-related headaches associated with the unit. (Make sure you talk with your agent about the type of property stored in the team. Old tables, desks, and chairs are insured very differently from old-school files and records.)

Is There Coverage If I Forgot To Include The Location On My Policy?

If you forget to include your storage unit located on the policy and your storage unit is vandalized or destroyed, you may still have coverage on your policy. Many property policies will consist of coverage called “Off-Premises Property” that will provide your school will provide some protection in the event of a claim. This limit is usually capped at $5,000 or $10,000, so you shouldn’t use this coverage as a safety net.

To find out more about insuring a storage unit for your charter school, please get in touch with our office to find out more.