One of the questions we receive from a number of the charter schools we work with here in Nevada is properly insuring items are located inside of a storage unit.   Many schools will have excess property they don’t want to keep on campus, so they will typically keep it in a temporary or even permanent storage unit.

 If the property in the storage unit is stolen or destroyed, how your insurance company will respond is dependent on how your property insurance policy was written. Handling the claim could (and should) be as simple as the property adjuster confirming the claim is covered, determining the amount of coverage, and cutting your school a check.  

Unfortunately, there are situations where the claim isn’t covered, or the coverage is at a highly reduced amount from the actual value of the property located within the unit. 

Insuring a Storage Unit Properly

When we see problems arise 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. So the best way to ensure you have coverage for the items located within your school’s storage unit is to have your insurance agent add the storage unit as if it were another location for the school.  

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 unit. Old tables, desks, and chairs are insured 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 include a coverage called “Off-Premises Property” that will provide your school with 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.