Eric Eggert, Business Development Specialist, examines the need for storage area coverage.
More and more buildings are adding storage areas for their residents. Some just have shelves or designated areas, but most buildings have individual storage bins or lockers. When it comes to insurance, the question is: who is responsible for the storage area and who is responsible for the contents stored inside them?
Whether they are owned or leased, any bins, lockers or shelves would be the responsibility of the building or property owner. The owner of the unit or the tenant is responsible for their contents in the storage area.
For example, when a leak from a unitowner causes damage to your stored contents, a common misconception is that your damaged property would be the responsibility of that unitowner. In most cases, this is not true. Generally, in order to know who is responsible for damage, think about what was damaged and not what caused the damage.
To protect yourself, we suggest an HO6 or an HO4 policy. A HO6 Policy is the insurance policy for a co-op or condominium owner while an HO4 is the insurance policy for someone who is renting the unit. Both policies contain a coverage called personal property, also known as contents. This would extend coverage for the contents in the storage area if they were damaged by a covered cause of loss.
For more information, please contact us.
