Much energy and effort is put into self-storage facilities to ensure customers have a great storage experience. From enhanced security and packing materials to online payment options and 24-hour self-serve kiosks, self-storage has come a long way over the years.
In addition to these feature-rich amenities, many self-storage operators also offer customers the option to purchase tenant insurance. Understanding this important component leads to a greater storage experience for your customers and can help insulate your business from liability.
What Is Tenant Insurance?
Tenant insurance is insurance renters can buy if they don’t already have coverage or don’t want to use their personal renter’s or homeowner’s insurance. A tenant-insurance program offers them a quick and convenient solution to satisfy the insurance requirements of their lease. The offering is affordable, short-term coverage designed specifically to protect property while it’s in a rented self-storage space.
In addition, a tenant-insurance program complements a self-storage operator’s risk-management program. Dealing with a customer with a covered loss who has purchased tenant insurance is a better situation for everyone involved. Another compelling reason to have a tenant-insurance program is most providers offer an administration fee to the operator, which means more facility revenue.
For managers, a tenant-insurance program offers a great way to help customers attain peace of mind for their stored goods. If property stored in a unit is damaged or stolen, a tenant policy can alleviate some of the sting. Plus, managers are not required to be a licensed insurance agent to offer the product. Effectively explaining the insurance requirement of your lease to tenants and presenting them with an insurance addendum is key to helping them choose what’s best for their situation.
Why Your Tenants Need Insurance
The perils covered by tenant insurance include many events that can occur at a self-storage site including crime, fire and natural disasters. The policy provides coverage similar to what’s found in a typical homeowner’s policy.
The convenience of offering a tenant-insurance program at your facility is also good customer service. Many customers don’t have coverage for their stored property, and even if they do, there’s the potential for increased premiums and high deductibles to consider if a claim is made against their homeowner’s or renter’s insurance policy.