HOUSTON – The self-storage business is booming. One out of every three Americans has a self-storage unit. People pay to keep their belongings safe and secure but what KPRC 2 Investigates discovered may make you think differently about how you protect your property.
Insurance for self-storage units
A lot of self-storage companies strongly recommend or even require that you buy insurance to cover the cost of your items in case they are damaged or stolen while on their property. One woman discovered the premium price she paid offers no protection when someone stole almost all of her belongings.
What’s left of Amber Lyle’s belongings are stacked up in the corner of her garage. That’s because everything else was stolen - out of her unit at Storage Star in Tomball. Gone: high dollar furniture, TVs, an electric fireplace, home decor items, and priceless items like cards from her grandpa and personal paperwork.
“My tax information, birth certificate, social security card, that’s all gone,” said Lyles.
She purchased a Masterlock to secure her unit and everything seemed fine. But when she opened the unit, it was nearly empty. Shocked and upset, she immediately went to the front office.
“I was sobbing, obviously. And I walk in and I’m like, ‘Hey, my storage unit was broken into.’ And she was like, ‘That’s not possible. There’s no way.’ And I’m like, ‘I’m telling you, it’s possible.’”
This is especially frustrating for Lyles because she paid a premium for the advertised added security.
“I picked it because it was indoor climate controlled, monitored, surveillance and a pin to enter and exit. So for security purposes like 24-hour video surveillance. It was roughly $160 monthly, and that includes like their insurance provider.”
Self-storage unit insurance claim denied
The claim on the insurance for the unit wasn’t much help either. The price of Lyle’s insurance was included in her monthly fee. The policy and coverage are the same for every self storage renter who accepts the policy. The Great American Insurance Group denied Lyles claim because her lock was intact and didn’t appear to be have been tampered with.
“They denied it because there are no visible signs of force injury,” explains Lyles.
That’s right. In the “covered causes of loss,” her policy lists, “burglary meaning the unlawful taking of property from the unit as evidenced by marks of forcible entry or exit.”
No sign of the break-in meant Lyle was out of luck.
As for all the video surveillance, the staff told Lyle they only keep video for thirty days and they didn’t see anything suspicious. Then Lyles said they ghosted her.
“Nobody contacts me. So after five, 10, 15 phone calls, it’s almost like beating a dead horse,” Lyles said.
“That’s you’re doing everything that you can. That’s negligence on their behalf, if somebody is able to break into a unit, take all of your belongings, and there’s nothing that you can say to me aside from that’s not possible. It’s frustrating,” Lyles told us.
When we stopped by Storage Star in Tomball, the open sign light was on, but the doors were locked and no one would come to the door.
After we left a message, we received a call back from Storage Star’s Chief Operating Officer Daniel Higuera.
Higuera told us the insurance policy guidelines are standard in the industry. If there is no evidence of a break-in, anyone could claim items were missing from their unit. We checked with the Texas Self Storage Association. A representative told us insurance companies who provide tenant insurance do seem to be moving in this direction.
Breaking into a storage unit by picking a lock or using a master key is possible. Austin police just arrested a man two weeks ago, accused of breaking into at least 12 Central Texas storage facilities discreetly for years.
“I would suggest that everybody go check your storage units just to see if you’re property is still there,” Det. Dawn Hanson, with Austin Police Department.
Insurance for self-storage units
There are a few takeaways about protecting your items in a storage unit. Do not buy your insurance through the self-storage facility. That insurance rarely covers anything and claims are usually limited to a couple of thousand dollars.
Sometimes, like in Lyle’s case, the price of the insurance is included in your monthly fee. But you can decline that coverage and take out your own policy, either through your homeowner’s insurance or a separate policy. Make sure you read that policy to find out what is covered.
While Storage Star wasn’t immediately helpful to Lyles, after we called the company offered to give her $3,000 for her belongings.
If you have an issue with a self-storage company, first complain to the Better Business Bureau. Texas Law Help also has details on laws related to self-storage.