Customer Storage Insurance

Protect Yourself Against Litigation

By David Wilhite

As you may know, every self-storage facility operator may besubject to litigation from tenants who have suffered damage totheir goods. The good news for facility owners is that courtshave generally held that facility operators cannot be held liablefor damages as long as they have made customer storage insurance(CSI) available to their tenants. That's why most savvyself-storage operators offer a CSI insurance program, which canreduce or eliminate a major insurance exposure at zero cost toyou while providing a valuable service to your tenants.

CSI can protect your tenants' stored goods while ensuring yourpeace of mind. By simply making CSI available, you can virtuallyeliminate the threat of litigation for damages to your tenants'stored goods. Remember, if your facility does not offer CSI, youcould be held liable for negligence and/or damages to customers'goods.

It Pays to Know the Facts About CSI

Fact: Every self-storage facility operator issubject to litigation from tenants who have suffered damage totheir goods.

Fact: The key element in any legal defenseagainst claims of negligence or liability (on the part of theoperator) is whether or not CSI was made available to the tenantwhile renting.

Fact: Tenants don't sue the facility operatorfor losses or damages when they can sue the operator's insurancecompany.

Fact: Today's judges are far more likely touphold limits of liability contained in a self-storage rentalagreement when CSI is offered to customers.

Fact: There are precedent-setting court casesin which the self-storage operator was found not liable fordamage to a customer's goods, because CSI was made available.

Fact: CSI must be considered a necessity andmust be made available at every self-storage facility.

What Does Storage Insurance Cover?

The availability of a comprehensive CSI policy is the easy,low-cost way to protect your tenants' stored goods from loss ordamage from a wide variety of perils. Tenants' valuables can beprotected for amounts usually ranging from $2,500 to $20,000, andpolices can typically be written or renewed in three-month,six-month or 12-month periods. Standard covered perils generallyinclude fire, lightning, smoke, burglary, water leaks, hurricane,explosion, tornado, building collapse, wind, hail, earthquake andvandalism.

David Wilhite is the marketing manager of UniversalInsurance Facilities Ltd. Universal offers a complete package ofcoverages specifically designed to meet the needs of theself-storage industry, including loss of income, employeedishonesty, comprehensive business liability, hazardous-contentsremoval and customer storage. For more information, contactUniversal at Box 5400, Scottsdale AZ 85261-9957; phone (800)844-2101; fax (602) 970-6240; Web site www.vpico.com/universal.