Insurance Programs for Self-Storage Tenants

Investing in Storage Units

People store their belongings to self storage facilities for various reasons. However, some people who rent the units assume that the self storage owner will automatically provide insurance for every belonging that they store.

It is true that self-storage facility providers are responsible for ensuring that the clients’ possessions are protected. On the other hand, they are, by contract and by law are not responsible for any loss or damage of property. Self-storage providers should discuss the contract carefully to their renters especially the new ones to avoid misunderstanding in the future. And since client satisfaction is very important, self storage owners might as well discuss the different ways on how renters can insure their goods.

The first method is to inform new customers that the self storage facility is not responsible for protecting what they store inside the units. Offer a brochure of a reputable company that they can contact, in case they want to insure their belongings. This way, the facility is out of the loop, since the self storage facility does not collect the insurance premiums. Also, the tenants are the ones who will contact the carrier to set it up. Just make sure that the tenants understand the importance of having their belongings insured by providing actual circumstances that the insurance coverage has been useful.

The second method is known as the “Pay-With-Rent” program. This is quite similar to the car rental business wherein renters will tick off the box that adds the cost of extra insurance to the car rental price. In self storage, the cost of the premium is integrated in their monthly storage space rental bill.

This method is highly popular with renters because it means lesser burden on their part as they do not have to contact third party providers. The self storage owners can also benefit with this program because they can charge an administration fee to the clients for managing the supplementary insurance arrangements.

Natural disasters, hurricane, earthquake, weather, fire and theft can happen to anyone. These events are beyond man’s control. Insurance is a form of risk management that is used primarily to protect belongings against risk of uncertain loss.

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