Tenant Insurance Is An Option For Self-Storage Operators

It is possible that you, as a selfstorage investor, will be affected in some way by crime read more here. Because self-storage facilities have high occupancy, crime can occur in any of the following ways: vandalism; arson; burglary; drugs or accidents. Due to the sheer volume of items kept, self-storage buildings are easy targets for thieves. Offering tenants insurance is a wise idea. It is important to remember that even the most well-managed self-storage facilities are subject to theft and break-in. A 2002 report found that 25 percent of self storage operators in the U.S. had reported thefts or breaks-ins. Even though rates have decreased in recent decades, you can still expect your facility to be hit during your involvement with this operation. Self-storage facility operators and managers should consider offering optional tenant insurance. This will help you to deter crime and keep your facility secure.

It is worth considering offering specialized insurance that protects the tenant’s personal property against loss, theft and damage. Tenant coverage is not included in self storage facility’s insurance policies. However your agent or insurance representative should be able give you options. There are several reasons it is beneficial to offer tenants coverage. The main reason being to limit your risk. Many tenants don’t understand self-storage. They will blame the self storage operator if their property gets stolen, destroyed, or lost. Even if you have made it clear in your lease that the selfstorage facility isn’t responsible in any way for clients’ property, you will be the first to blame and could even be sued. A lot of courts will reduce the liability of the owner of the facility by offering tenant insurance right away.

One benefit of providing tenant insurance is that existing and prospective customers will feel more confident about renting storage spaces from you. Most customers are going through a major life change. Customers are often attached to the things they store. If you provide tenant insurance and educate your customers about the benefits, they will be more comfortable renting self-storage spaces. The fact that insurance companies may pay you a fee to sell and manage their tenant insurance programs is an often overlooked benefit of tenant insurance. This can be a great way to increase your business’s profitability and value. While the fees paid by insurance companies to self-storage property owners can vary, they all add up. There are two types of tenant insurance that a self-storage operator can offer. The first program is called a mail-in. In this case, the insurance company sends all marketing materials and forms directly to the operator. He then gives them out to potential customers. The form is then completed by the tenant, who mails it with payment. This process is straightforward for the owner, but it will not attract as many tenants. The insurance payment is included in this storage fee. This method is the most popular. This method is more laborious for the operator but simplifies things for the tenant. If it’s offered in this way, customers will buy more insurance and they will appreciate the convenience and peaceof mind it offers.

Leave a Reply

Your email address will not be published. Required fields are marked *