Your self-storage site should operate at what is called “insurance neutral.” For example, if your facility premiums are $5,000, you should be creating income from the sale of tenant insurance that, at a minimum, offsets this cost. In fact, selling tenant insurance should be treated as a profit center. If you’re not offering an insurance option to customers, consider the following.
Q: Why would I want to get involved with the sale of insurance?
A: Because your competitors are likely offering this service to their tenants. Tenant insurance protects your business and your customers’ stored belongings.
Q: Our employees don’t understand the coverage, so they won’t discuss insurance with customers.
A: Most insurance providers will meet with your staff to review wordings, limits and exclusions. At the same time, they’ll provide guidance for asking customer questions and offering solutions.
Q: This is too much work!
A: Ask your tenant-insurance provider what other sites are experiencing and how offering tenant insurance to their customers has added revenue and increased occupancy.
There are a few insurance brokers that have designed insurance programs specific to the self-storage industry. These brokers have knowledge of insurance but, more important, they understand your needs. Your site is likely a sizable asset, so choose one of the exclusive programs and deal with an insurance broker who will help build your business.
With 30 years of experience in the insurance industry, Anthony Domenici is the managing partner at Tripemco Burlington Insurance Group Ltd., an advice-based insurance brokerage that specializes in commercial insurance in Canada. He designed the Just Storage Exclusive Insurance Program. For more information, visit www.tripemco.com .