Insurance Corner

Disasters happen. Natural disasters, such as fire, flood, hurricanes, tornados, earthquakes and even volcanic eruptions are a fact of life, and home and business owners have always had to deal with them. That's why, as a responsible self-storage facility owner, you need to have an action plan in place should a disaster strike your operation. Being prepared for the worst can go a long way toward minimizing any disruption you may suffer should a disaster occur.

For example, it's a good idea to keep backup copies of your valuable papers in a secure location off-site. It's also helpful to photograph or videotape your business-personal property to document your claim in the event of a loss. Most business experts also recommend you review your insurance coverage with your agent or broker at least once a year to better protect yourself against changing exposures that occur over time.

What to Do After a Loss

The first thing you should do after a loss--and note that some business insurance policies require you to do this--is take immediate action to protect your property against further damage. Depending on the circumstances of your particular loss, this might include calling a public utility to shut off the power to your premises (as in the case of flooding). Assuming your claim is covered, the cost of any emergency measures should be picked up by your insurance company (be sure to keep your receipts for repairs). Of course, it goes without saying that if a loss forces you to evacuate your premises, you should notify the police department before leaving your facility unlocked and unattended.

The next thing you should do after a loss is to make an inventory of any items that have been lost, stolen or damaged. This serves two purposes: It can help you generate an action plan for getting your facility back in operation and can greatly speed up the processing of your claim. Seeing the destruction of your business and personal property can be traumatic, especially in the case of a fire; but remember you should not dispose of any damaged goods until your claim has been fully investigated by your insurance adjustor.

The third thing you should do is get in touch with your insurance agent or broker as soon as possible after a loss--the more quickly he is contacted, the sooner your claim can be processed. Advise him of any loss or damage, and follow up with a letter detailing your loss (keep a copy of the letter and all other correspondence for your records). In situations where you need to evacuate your premises or have lost access to public services, be sure to give your agent a telephone number where you can be reached. Also try to avoid discussing the circumstances of your claim with anyone except your agent--doing otherwise may actually put your claim in jeopardy.

Filing Your Claim

In order to be reimbursed by your insurance company after a loss, you will need to file a claim. This is the formal document on which payment will be adjudicated according to the terms and conditions of your policy. In most cases, your insurance agent can complete and file the claim for you over the phone, although, in some instances, you may be required to file the form yourself. In either case, supply your agent with as much detail as possible. Remember to give him copies of all police and/or fire reports, repair receipts and other pertinent documentation.

The Role of the Claims Adjuster

Once you have reported your claim to your agent (who represents you), he will immediately contact a claims adjuster (who represents the insurance company). The claims adjuster's job, after thoroughly investigating the nature of your loss, is to make a judgment call on behalf of the insurance carrier to pay all, part or none of your claim, according the the terms and conditions of your policy. While most claims are settled promptly and fairly, some are more complicated and may require some interaction on your part. In such cases, your agent should work with you to help resolve your claim to your satisfaction.

What You Need to Know About Your Deductible

When your claim is settled, the amount the insurance company pays out to you might be subject to a deductible. Choosing a larger deductible allows the insurance company to charge a smaller premium since you have agreed to pay a larger share of any incurred damages. Most self-storage facility owners choose a $1,000 deductible on their insurance policies. Remember, no matter how large or small your self-storage facility may be, securing adequate coverage is essential for protecting your business and your peace of mind.

David Wilhite works for Universal Insurance Facilities Ltd., which offers a complete package of coverages specifically designed to meet the needs of the self-storage industry. For more information on Universal's coverages, or to get a quick, no-obligation quote, call 800.844.2101; fax 480.970.6240; e-mail [email protected]; visit

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