Insuring Property While In Storage

Most homeowner's policy, or tenant's policy if it is an apartment, provide extremely broad coverage for personal property. It covers personal property owned or used by an insured anywhere in the world. However, the amount of coverage for off-premise personal property is limited to 10 percent of the contents for personal property "usually located" at the insured's residence.

While often misrepresented as limiting all off-premise personal property coverage to 10 percent, the actual wording only applies the 10 percent limit only to property that is usually located at the insured's residence. For this restriction to apply, the insured must have more than one residence. In addition, the personal property must be "usually located" there.

For example: if the insured has a second home, their homeowners' coverage of his or her main residence only extends to 10 percent of the contents that is usually kept at the second home. For personal property that is taken back and forth between residences....the 10 percent rule would not apply. This rule also would not apply to personal property that is kept in storage or at a friend's house. Typically personal property of a college student is subject to the 10 percent limit.

There are a few items that are not typically covered under your homeowner's policy. They are:

Motor vehicles are only covered when used to service the residence or assist the handicapped. There is recreational vehicle policies designed to cover the property and liability exposures of such vehicles.

While the homeowner policy provides broad coverage in most storage-related situations, there are specific exposures that are not covered. It is always prudent to consult with your Independent Insurance Agent in advance to discuss your coverage and exposure.