Why You MUST Shop Around When Buying Self-Storage Insurance

Nick Saving Money sponsored post, insurance 2 Comments

Today I’m focusing on self-storage. This is hugely popular in the UK, which has nearly half the self-storage sites in Europe (according to their trade body, the Self Storage Association UK).

People use self-storage for all sorts of reasons. They include moving home, when you may have to store your furniture and possessions for a short period. It also includes moving in with a partner, when you need to store some items temporarily until you decide what to do with them (do you really need two washing machines, for example).

Another common reason is people moving abroad – perhaps on a one- or two-year work contract – and needing somewhere safe to store their belongings until they return.

Self-storage can be particularly attractive to older people, such as many readers of this blog. Perhaps you’re downsizing and don’t have room for all your belongings in your new home. Or you may simply have accumulated a large number of possessions over your lifetime and need somewhere away from your home to store them, so you don’t run out of space! You might also have things that for one reason or another – e.g. their size or value – you don’t want to carry on storing at home.

As mentioned above, UK residents are fortunate to have lots of options when it comes to self-storage, and it is of course important to shop around for the best price for the service you require.

A recent study by mystery shopping company ProInsight highlighted the particular importance of shopping around for insurance, however. In particular, it highlighted the importance of not automatically choosing the insurance offered by the self-storage company itself. More about this shortly.

Self-Storage Insurance

If you are going to use self-storage, contents insurance is normally compulsory. This will cover loss or damage to your stored contents caused by anything from water/oil leaks to attempted theft. Some household contents policies cover this, but the majority don’t, especially if the items will be in storage over a lengthy period.

All self-storage providers offer insurance, typically by arrangement with a particular insurance company or broker. What many people don’t realise, however, is that you can also insure your belongings separately, perhaps using an online insurance provider. As we shall see, potentially large savings can be made this way.

Mystery Shopping Research

The ProInsight study mentioned above used mystery shoppers to get quotes from 165 self-storage branches across the UK, covering 70 firms in total. They were chosen to provide a representative sample of self-storage providers, including large and small, general and specialist, business- and consumer-oriented. They included branches of all the top five self-storage companies in the UK:  Safestore, Big Yellow Self Storage, Access Self Storage, Shurgard Self-Storage and Lok’nStore.

The results were eye-opening, to say the least. In all but one case, savings could be made by using a third-party online insurer. In many cases these savings were substantial. For example, a Big Yellow branch in Bromley quoted a figure of £340.20 for a policy covering £5,000 worth of goods for three months. The same risk could be insured for between £21.30 and £44.85 elsewhere.

Richard Hannan of Surewise.com, the insurance company who commissioned the ProInsight study, said: “We were amazed to find that storage companies were charging an average of three times more for the same or very similar policies. Some of the prices that were being charged were highly alarming and in fact, we struggled to find a single self-storage company that was selling insurance for less than their online competitors.

“This means 99% of people who are insuring with their storage units will make savings by spending a few minutes online, and possibly considerable savings at that.”

It follows that if you are using self-storage over a long period, you could end up paying hundreds or even thousands of pounds more in insurance costs if you stick with the cover offered by your self-storage provider.

Obviously it’s important to compare like with like, and the self-storage companies have argued in their defence that online policies don’t always offer the same level of protection as their own. However, Richard Hannan said, “We have always covered a lot of these areas, such as water and oil damage, and ‘new for old’ but our new policies which are underwritten by SAGIC, have added all these additional cover areas such as moth, subsidence or sprinkler damage to combat these messages back from the storage units. SAGIC are The Salvation Army General Insurance Corporation.”

Surewise.com

The ProInsight study mentioned above found that in many (though not all) cases, the lowest cost online insurance cover provider was Surewise.com. Their Household and Business Self-Storage Insurance covers you against loss or damage to stored contents in the event of:

• Natural disasters, including lightning, earthquake, storm, flood and weight of snow
• Fire and explosion
• Leaking water/liquid from fixed water tanks and pipes
• Theft and attempted theft, with proof of violent breaking and entering (e.g. broken lock)
• Falling trees, telegraph poles and lamp posts
• Collision by any vehicle or animal
• Impact by aircraft and other flying devices or items dropped from flying aircraft
• Rioters, violent disorders, strikes, labour disturbances, civil commotion and malicious acts

Surewise.com say they will replace or repair any stored items damaged (with repair or replacement at their discretion). They provide an instant insurance certificate when you order online. If you are thinking of using self-storage, it is well worth checking their website to see how much you could save.

Summing Up

If self-storage is something you plan to use, be sure to shop around. There are lots of options in the UK, so take some time to research the market and find out which is best for your needs.

In addition – and very importantly – DON’T just accept the insurance offered you by the self-storage company. Assuming your ordinary home contents insurance doesn’t cover you, get quotes from online insurers such as Surewise.com. The great majority of self-storage companies allow customers to use third-party insurers, and in many cases you can save large sums by doing so, especially if you plan to use self-storage long term.

If you have any comments or questions about this article, as always, please do post them below.

Disclosure: This is a sponsored post on behalf of Surewise.com, from whom I am receiving a fee.