Do You Actually Need Storage Insurance?
We cross-referenced the Product Disclosure Statements of Australia's 10 largest home insurers. 8 out of 10 already cover items in self storage — meaning most Australians are paying $180–360/yr for duplicate coverage they don't need.
Why a storage comparison site is publishing this
StoragePrices doesn't sell insurance or earn referral fees from insurers or storage providers. We make money when people make informed storage decisions. If telling you to skip duplicate insurance saves you $300/yr and builds trust in our platform — that's a good trade for both of us.
The Key Finding
8/10
major AU home insurers cover items in storage
$180–360
per year in duplicate insurance you may not need
5 min
phone call to your insurer to confirm coverage
1. How Storage Facility Insurance Works (And Why It's Pushed So Hard)
When you sign up for a storage unit in Australia, you'll be offered insurance by the facility. At Kennards, it's called "Kennards Protect." At National Storage, it's "NSafe." Storage King offers "StoreAssure."
These products are not insurance provided by the storage company. They're underwritten by a third-party insurer (often Steadfast, Vero, or CGU) and sold by the facility on commission. The storage company earns a referral fee — typically 20–40% of the premium — for every customer who signs up.
Translation: When the staff member says "most people take the insurance" — they're earning commission on every policy sold. That's not inherently wrong, but it's worth knowing when evaluating the recommendation.
Typical facility insurance costs
| Coverage Level | Monthly Cost | Annual Cost | Typical Excess |
|---|---|---|---|
| $5,000 cover | $15–18/mo | $180–216/yr | $0–100 |
| $10,000 cover | $20–25/mo | $240–300/yr | $0–200 |
| $25,000 cover | $25–30/mo | $300–360/yr | $100–250 |
| $50,000 cover | $30–40/mo | $360–480/yr | $200–500 |
The product is usually pre-selected on the booking form. You have to actively untick or decline it. This opt-out design is intentional — it maximises uptake.
2. The PDS Comparison: 10 Home Insurers, Tested
We reviewed the current Product Disclosure Statements (PDSs) of Australia's 10 largest home contents insurers to answer one question: does your existing policy already cover items stored in a commercial self-storage facility?
| Insurer | Covers Storage? | Limit | Time Limit | Key Condition |
|---|---|---|---|---|
| NRMA (IAG) | Yes | Up to sum insured | No limit | Must be a lockable commercial facility |
| RACV (IAG) | Yes | Up to sum insured | No limit | Must be a lockable commercial facility |
| Allianz | Yes | Up to 25% of sum insured | 90 days | Temporary removal only; contact insurer for longer |
| Suncorp | Yes | Up to $10,000 or 20% | No limit | Commercial storage facility; specify on policy for higher limits |
| AAMI (Suncorp) | Yes | Up to $10,000 or 20% | No limit | Same as Suncorp; must be in your name |
| QBE | Yes | Up to 15% of sum insured | No limit | Commercial storage only; excludes outdoor/open areas |
| Youi | Yes | Varies (call to confirm) | Must notify | Must notify Youi; may need to add storage address |
| Budget Direct | Yes | Up to $10,000 | No limit | Lockable commercial facility; no flood cover at storage |
| CommInsure (CBA) | Partial | Up to $5,000 | 60 days | Temporary removal only; longer storage not covered by default |
| RAC (WA) | Partial | Up to 10% of sum insured | 90 days | Temporary basis only; limited perils at storage location |
How to read this table:
- "Sum insured" = the total value you've insured your contents for (e.g., $80,000). If the limit says "25% of sum insured" on $80,000 cover, that's $20,000 for items in storage.
- "Time limit" = how long items can be in storage and still be covered. "No limit" means ongoing coverage. "90 days" means you need to call the insurer if storing longer.
- "Must notify" = you need to tell the insurer that items are in storage. Not doing so could void the cover.
Important: PDS terms change. We reviewed documents current as of March 2026. Always check your own policy or call your insurer to confirm current coverage. This guide is informational — not financial advice.
3. What Home Contents Insurance Covers in Storage
Most Australian home contents policies include a provision for "contents temporarily removed from the home" or "contents at other locations." This provision was originally designed for items taken on holiday or lent to friends — but it extends to commercial self-storage facilities.
Typically covered events
- ✓ Fire, smoke, explosion
- ✓ Storm, rainwater, flood (varies)
- ✓ Theft with forced entry
- ✓ Malicious damage / vandalism
- ✗ Mould, mildew, vermin
- ✗ Wear and tear, gradual deterioration
- ✗ Items improperly packed
- ✗ Unexplained disappearance
Here's the important part: the exclusions are virtually identical between your home contents policy and the storage facility's insurance product. Both exclude mould, vermin, and wear. Both require forced entry for theft claims. You're not getting meaningfully different coverage by paying for the facility product — you're getting the same coverage twice.
The one real difference: excess
Facility insurance typically has a $0–250 excess, while your home contents policy has your standard excess — usually $500–1,000. This matters for small claims. If you experience $800 of damage, facility insurance pays out $600–800 while your home policy pays $0–300 after excess.
For large claims (fire, major theft, flood), your home contents policy is vastly superior — it covers up to your full sum insured ($50,000–$150,000+) versus the $5,000–$50,000 cap on most facility products.
4. The Gaps: When Your Home Insurance Falls Short
Home contents insurance isn't a guaranteed replacement for facility insurance in every case. Here are the real gaps:
Gap 1: Time limits
Allianz, CommInsure, and RAC limit "temporary removal" to 60–90 days. If you're storing for longer, you need to call your insurer and request an extension. Most will grant it, but some may charge a small additional premium or reduce the coverage percentage. If you don't call, you may have no coverage at all after the time limit expires.
Gap 2: Percentage-based limits
QBE caps storage coverage at 15% of your sum insured. On a $60,000 policy, that's $9,000. If you're storing $15,000+ worth of goods, you're underinsured. Suncorp/AAMI default to $10,000 or 20% — whichever is less. You can usually increase this by calling the insurer and specifying the storage location on your policy.
Gap 3: Notification requirements
Youi requires you to notify them when items are in storage. Some other insurers require you to add the storage address as a "specified location." Failing to notify could give the insurer grounds to deny a claim. A 5-minute phone call eliminates this risk.
Gap 4: No home contents insurance at all
About 29% of Australian renters have no contents insurance (ASIC 2023). If you don't have a home contents policy, you have no existing coverage to rely on. In this case, facility insurance is your only option — or consider getting a home contents policy, which protects everything you own (not just what's in storage).
5. How to Check Your Policy in 5 Minutes
Before you sign a storage contract, make one phone call. Here's exactly what to ask:
Script: What to say when you call your insurer
-
"I'm putting some household items into a commercial self-storage facility. Does my contents policy cover them while they're there?"
Expected answer: Yes, under "contents temporarily removed" or "contents at other locations."
-
"What's the dollar limit for items in storage?"
Expected answer: A percentage of your sum insured, or a fixed dollar limit.
-
"Is there a time limit? I expect to store items for [X months]."
Expected answer: Either "no limit" or "90 days, but we can extend it."
-
"Do I need to add the storage facility address to my policy?"
Expected answer: Either "no" or "yes, let me add it now for you."
-
"Can you send me written confirmation of this coverage?"
Always get it in writing. An email or certificate of currency protects you if you need to prove alternative coverage to the storage facility.
Pro tip: Ask for a "certificate of currency" or "letter of confirmation" showing your contents insurance covers items at the storage address. Most storage facilities will accept this in lieu of their own insurance product. Saves the call-back-and-forth later.
6. Side-by-Side: Facility Insurance vs Home Contents
| Feature | Facility Insurance | Home Contents Insurance |
|---|---|---|
| Annual cost | $180–360/yr | $0 extra (included) |
| Coverage limit | $5,000–$50,000 | Up to full sum insured ($50K–$150K+) |
| Excess | $0–250 | $500–1,000 (your standard excess) |
| Covered perils | Fire, storm, theft, vandalism | Fire, storm, theft, vandalism (same) |
| Excluded perils | Mould, vermin, wear, improper packing | Mould, vermin, wear, improper packing (same) |
| Claims process | Via facility's underwriter | Via your existing insurer |
| Notification required | No (automatic at sign-up) | Sometimes (5-min phone call) |
| Cancellation | Automatic when you leave | Continuous (protects all your stuff) |
Our honest take: For most Australians with home contents insurance, facility insurance is duplicate coverage. The only advantage is the lower excess — which is worth it if you're storing low-value items where a $500 excess would wipe out the claim. For anything above ~$2,000 in stored value, your home contents policy provides superior coverage at no additional cost.
7. How to Decline Facility Insurance at Sign-Up
Storage facilities handle insurance opt-outs differently. Here's what to expect at the major providers:
Kennards Storage
"Kennards Protect" is offered at sign-up. You can decline by selecting "I have my own insurance." They may ask you to provide your insurer's name and policy number, or sign a declaration acknowledging your goods are at your own risk. No proof of insurance required.
National Storage
"NSafe" insurance is pre-selected during online booking. Untick the box to decline. You'll be asked to acknowledge that your goods are not covered by National's insurance. They accept a certificate of currency from your home insurer as proof of alternative coverage.
Storage King
"StoreAssure" is offered at sign-up. You can decline and sign a waiver confirming you accept responsibility for your goods. If you have proof of alternative cover, provide it at sign-up to avoid follow-up calls.
Fort Knox, StoreLocal, and others
Most smaller providers offer insurance via their management software (RapidStor, Storman). Declining is usually a checkbox during the online booking process. If signing up in person, simply tell staff you have your own insurance.
Know your rights: Under Australian Consumer Law, a storage facility cannot require you to purchase their insurance product as a condition of renting a unit. They can require you to have some form of insurance (their product or your own), but they cannot mandate their specific product. If a facility insists, ask to speak to a manager and cite this right.
8. Three Scenarios Where Facility Insurance IS Worth It
We've spent most of this guide explaining why you probably don't need facility insurance. But there are genuine scenarios where it makes sense:
Scenario 1: You don't have home contents insurance
If you're renting and don't have a contents policy (about 29% of Australian renters), facility insurance is your only option. At $15–30/month, it's much cheaper than a home contents policy for the specific purpose of protecting stored goods.
Better move: Get a basic home contents policy ($20–40/month). It protects everything you own — not just what's in storage — and eliminates the need for facility insurance.
Scenario 2: You're storing high-value items and your home policy has a low storage sub-limit
If your home insurer caps storage coverage at $5,000–$10,000 and you're storing $30,000+ worth of goods, you're underinsured. In this case, facility insurance fills the gap. Better yet, call your insurer and ask them to increase the storage sub-limit — this is often free or costs a small premium increase.
Better move: Call your insurer and ask to increase your storage sub-limit. This usually costs less than a separate facility policy.
Scenario 3: You're storing business inventory (not household goods)
Home contents insurance covers household items. If you're running an e-commerce business and storing stock in a unit, your home policy won't cover it. You need either facility insurance or a commercial contents/stock policy.
Better move: Get a commercial contents policy if your stock is worth more than $10,000. Facility insurance is fine for small-scale e-commerce sellers.
The Bottom Line: A 30-Second Decision
You have home contents insurance, your policy covers items in storage, and the stored value is within your policy's sub-limit. Save $180–360/yr.
You're not sure about your home policy's storage coverage. Call your insurer (5 minutes) before signing the storage contract. Use our script above.
You don't have home contents insurance, or you're storing business stock, or your home policy's sub-limit is too low and can't be increased.
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