The UK is in the midst of a self-storage boom, and it doesn’t appear to be slowing down anytime soon.
According to the Self Storage Association UK, there are now more than 2,200 self-storage locations, which is a rise of 15.7% in five years, from around 1,900 in 2020, with further growth expected. This growth can be attributed to rising housing costs, smaller living spaces, and greater urbanisation.
The footprint alone of self-storage sites has risen to 64.3 million square feet, according to real estate firm Cushman & Wakefield – an area the size of 930 football fields.
If you’ve used self-storage before, you’ve likely been asked whether you have insurance or if you’d like to purchase the facility’s in-house policy. What many people don’t realise is that insurance is often mandatory, and while in-house cover may seem convenient, it can cost up to three times more than alternatives available on the wider market.
The Daily Mail reported that self-storage customers could be paying up to nine times more for their insurance than necessary.
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Proinsight Results
We worked with Proinsight to carry out mystery shopping in 135 self-storage facilities, and the results revealed staggering differences in price.
- One storage company in Berkshire quoted £108 for six months’ cover on £1,000 worth of goods. The same level of protection could be bought from Surewise for just £10.98 – a difference of 884%.
- In Greater London, a customer was quoted £1,159 to insure £27,000 worth of belongings for six months. Equivalent cover elsewhere cost just £146.37 – a saving of over £1,000.
- A Newcastle self storage provider charged £859.20 for six months’ cover on £20,000 of goods. The cheapest alternative was £121.13, saving the customer more than £700.
Across almost every case studied, buying through the self storage company was the more expensive option. Only a handful of providers offered the most competitive prices in-house.
You can read the full Daily Mail article here.
Why Are Self Storage Insurance Costs So High?
Many storage providers partner with insurers and brokers, adding their own commission on top of the premium. In some cases, customers were told insurance was “bundled in” with the cost of storage, with little transparency over what they were actually paying for cover.
However, when pressed, all surveyed storage firms confirmed that customers are not obliged to take out insurance through them and rely on customers being unaware of this.
Richard Hannan, Director at Surewise, said:
“Our research shows that there is a steep price to pay for convenience when taking out insurance through self storage providers. Customers may not be given the cheapest quote and are very likely to overpay. Shopping around remains the best way to ensure you’re getting the right cover at the right price.”
Most self storage firms require customers to have insurance as a condition of booking. This can be arranged in three ways:
- Buying directly from the self storage company
- Shopping around for independent cover through insurers or brokers
- Being covered by an existing home insurance policy (although this is rare)
But our research revealed that those who opt for the “convenient” option of buying from their storage provider often face much higher costs.
Key Takeaways
Once again, our research with Proinsight shows that convenience comes at a cost, and knowing you have other options than just going direct can save you money.
Getting insurance from another provider doesn’t have to be complicated or time consuming. With Surewise, you can receive a quote in just minutes and get an immediate policy certificate to present to your storage unit.
To arrange your storage insurance with us, simply get a quote below.
