Storage Insurance: Do You Need It? What South Dakota Renters Should Know

You’re signing the lease for a storage unit and the question pops up: “Would you like storage insurance?” It feels like an upsell. But is it? Here’s the honest breakdown of whether you actually need storage unit insurance — and what happens if you skip it.

What Storage Insurance Actually Is

Storage insurance (sometimes called “tenant protection” or “stored property coverage”) is a policy that covers your belongings inside a storage unit against specific risks — typically fire, theft, vandalism, water damage, and certain natural disasters.

It is not the same as the facility’s insurance. This is important. The facility’s insurance covers their building. It does not cover your stuff. If a tornado rips through Tyndall and damages the building, the facility’s insurance pays to rebuild the structure. Your grandmother’s antique dresser inside? That’s on you.

What Most Policies Cover

Standard storage insurance typically covers:

• Fire and smoke damage
• Theft and burglary (with proof of forced entry in most cases)
• Vandalism
• Water damage from burst pipes or storms (not flooding — more on that below)
• Wind and hail damage
• Weight of ice and snow causing structural collapse

What’s usually excluded:

• Flooding — this requires separate flood insurance, and it’s relevant if you’re near the Missouri River or its tributaries
• Pest damage — mice, insects, mold caused by your own packing mistakes
• Mysterious disappearance — if something’s just “gone” with no sign of forced entry
• Wear and tear — normal aging and deterioration
• Your own negligence — storing prohibited items or failing to maintain your unit

Does Your Homeowner’s or Renter’s Insurance Already Cover It?

Maybe. This is the first thing to check before buying separate storage insurance.

Many homeowner’s and renter’s insurance policies include “off-premises coverage” — meaning your belongings are covered even when they’re not in your home. Typically this covers 10% of your total personal property coverage.

Example: If your homeowner’s policy covers $100,000 in personal property, you might have $10,000 of off-premises coverage that applies to items in your storage unit.

But check the details: - What’s the deductible? If it’s $1,000 and your stored items are worth $2,000, is it worth filing a claim? - Are there exclusions specific to storage units? - Does the policy cover the specific risks you’re worried about? (Flooding is almost always excluded from standard homeowner’s policies) - Will filing a claim affect your homeowner’s premium?

Call your insurance agent. It’s a five-minute conversation that could save you money — or reveal a gap you didn’t know about.

When You Definitely Need Storage Insurance

You Don’t Have Homeowner’s or Renter’s Insurance

If you’re between homes, just moved to the area, or simply don’t carry renter’s insurance (you should, but that’s a separate conversation), you have zero coverage. Storage insurance is your only option.

You’re Storing High-Value Items

Firearms, antiques, collectibles, expensive equipment, family heirlooms from the old homestead. If losing these items would be financially devastating or emotionally irreplaceable, insurance is a no-brainer. Firearm storage in particular should always be insured.

You’re Storing Business Inventory or Equipment

Small business owners using a storage unit for inventory, supplies, or equipment should carry coverage. Your business insurance may extend to stored items, but verify it — commercial policies are full of exclusions.

You’re Near Flood-Prone Areas

Southeast South Dakota has real flood risk. If your storage facility is anywhere near the Missouri River corridor, creek bottoms, or low-lying areas, standard insurance won’t cover flood damage. You’d need a separate flood policy — and even then, coverage for items in storage can be limited.

You’re Storing Someone Else’s Belongings

Handling an estate? Storing items for a family member? You’re liable for those belongings. Insurance protects you from an awkward conversation about grandma’s china collection.

When You Can Probably Skip It

Low-Value Items

If you’re storing old furniture worth a few hundred dollars total, boxes of clothes you haven’t worn in two years, and holiday decorations from Walmart — the insurance premium might exceed the value of what you’re protecting.

Short-Term Storage

Storing things for two weeks during a move? The risk window is small. Check your homeowner’s policy and if you have off-premises coverage, you’re likely fine.

You Self-Insure

If you have the financial cushion to replace everything in the unit without hardship, insurance is optional. This is a personal decision based on your risk tolerance and financial situation.

How Much Does Storage Insurance Cost?

Most storage insurance policies run between $8 and $30 per month, depending on coverage limits. Typical tiers:

That’s $96-$360 per year. For most people, this is cheap peace of mind. For someone storing $500 worth of stuff, it might not make sense.

How to Get Storage Insurance

Through the Storage Facility

Most facilities offer insurance at the time of rental. This is convenient and usually affordable. The coverage is specifically designed for storage situations, so there are fewer gaps.

Through Your Existing Insurance Provider

Call your homeowner’s or renter’s insurance agent and ask about increasing your off-premises coverage or adding a rider for stored items. This sometimes costs less than a separate policy and keeps all your coverage in one place.

Through a Specialty Provider

Companies like Safestor, Storage Guard, and others specialize in storage insurance. They’re worth comparing if you have unique items or need higher coverage limits.

Tips for Filing a Claim

If something does go wrong:

1. Document everything immediately. Photos and video of the damage. Don’t move anything until it’s documented.
2. Contact the facility. They need to file an incident report. Get a copy.
3. Contact your insurance provider within 24 hours. Most policies have reporting deadlines.
4. Provide your inventory list. This is why keeping an organized inventory matters. An insurance adjuster needs to know what was in there and what it was worth.
5. Don’t throw anything away until the adjuster has seen it or approved disposal.

The Real Question: What Would It Cost to Replace Everything?

Walk through your unit mentally (or physically). Add up the replacement cost of everything inside. Not what you paid for it — what it would cost to replace today.

If that number makes you uncomfortable, get insurance. If it doesn’t, you might be fine without it.

For most southeast South Dakota families storing a mix of seasonal gear, furniture, holiday decorations, and household overflow, the total value is usually $3,000-$10,000. At $12-25/month, insurance on that amount is reasonable.

The Bottom Line

Storage insurance isn’t a scam and it isn’t always necessary. It depends on what you’re storing, what existing coverage you have, and how much risk you’re comfortable carrying yourself.

Our recommendation: check your existing insurance first, calculate the replacement value of your stored items, and make an informed decision. Don’t just click “no” on autopilot — and don’t just click “yes” because someone offered it.

Lock N’ Leave It Storage locations in Tyndall, Springfield, and Freeman offer secure, well-maintained units that reduce your risk from the start. But no facility can eliminate every risk. Contact us to discuss unit options, and talk to your insurance provider about coverage. It’s one of those boring-but-smart things that pays off when it matters.