Stored Off Premises – Covered or Not?
Once your policy renews, coverage for items stored off premises may no longer apply. Is an overflow of inventory causing a storage crisis on your property? Regardless of the cause, if your business has leased space in a storage unit, you should know how your business insurance will apply to a loss if business property is damaged while in the unit.
First, some good news: Many commercial property insurance policies will cover items damaged while in storage. Note that coverage applies only for specific causes of loss. For example, property is probably covered if the storage unit is burned in a fire or damaged by wind, but it probably would not be covered if it was damaged by flooding.
Now, the bad news: Any coverage for property damaged in storage is likely limited. Such limitations may be based on dollars and/or time. For example, when moved to a storage unit, property may be covered for a limited dollar amount (e.g., $10,000). Further, such coverage may be available only until the end of the policy’s term. Once the policy renews, coverage may no longer apply unless expressly permitted by the insurance company.
Some storage facilities offer an insurance policy to renters. Read the conditions of such insurance carefully for limitations, including the possibility that the facility’s policy won’t act as primary coverage and will serve only in excess of your business insurance policy.
Rettino can help you navigate and protect against losses from items stored off premises. Contact Us today!