Make sure that your customers are not sharing a policy or single limit of insurance. If a policy or limit of insurance is being shared, this is your first clue that this method is likely not in compliance with those regulatory bodies that govern the sale of insurance products.
Put Tenants First
Aside from the compliance issue, the total limit of insurance may not be adequate to properly compensate all tenants for their damage or stolen goods. This is a dangerous gamble that could have dire financial consequences for many including the storage facility.
The insurance offering should be considered a value-add that attracts new tenants and/or builds loyalty with existing tenants. With this mind, find the most comprehensive coverage, at a competitive rate that will respond by paying a covered claim if something goes wrong.
Make sure that the process is easy for your tenants and, as previously stated, make sure they are dealing with a solid insurance company and broker with an established reputation. After all, if the insurance doesn’t work, your tenant may point the finger at you.
The Broker Bond
The support of your broker is vital to offering adequate tenant insurance. Be sure the administration of the tenants insurance is efficient with solid insurance broker support. An efficient system will likely use technology, create a unique insurance contract for each tenant and provide a searchable database available to the facility. The administrative system will be tailored to meet those regulations that govern the distribution of insurance in a given province or territory. Lastly, you need an insurance broker available and equipped to field insurance questions from your valued tenants.
So how have times changed? There are some tried, tested and true insurance providers still around as well as a number of new entries to the self-storage insurance arena. If you consider these earlier points, you will likely make the right decision for you and your tenants.
When all is said and done, the old adage applies, “If it sounds too good to be true, then it probably is.” But these guidelines will help you make an informed decision.
Tobias "Toby" Struewing is a commercial account executive for Cowan Insurance Brokers Ltd., a provider of insurance and risk management products and services for the Canadian market. For information, call 866.912.6926; e-mail email@example.com; visit www.cowangroup.ca.