New Hampshire Senate Bill 124 (SB 124) went into effect on Jan. 1, allowing self-storage operators to sell tenant insurance with a limited-lines license. The update to the state’s insurance provision authorizes facility owners and their employees to sell insurance that covers loss of or damage to tenant-stored belongings valued at up to $10,000. Those selling the product must receive training from the insurer in a method approved by the state commissioner, according to the measure.
As part of each insurance sale, self-storage operators must provide customers with written materials that outline the terms of coverage offered including “the identity of the insurer, premium amount, benefits, exclusions and conditions.” They must also present a word-for-word written disclosure statement that informs tenants that the coverage may duplicate an existing homeowners or renters policy. If some form of goods coverage is a requirement to rent a unit, the customer can provide evidence of their applicable policy to opt out of buying one through the storage facility.
The limited-lines license granted by the law must be renewed every two years, with fees determined by the state commissioner. The measure caps the cost for the initial license and each renewal at $150 for self-storage businesses with as many as 10 facilities in the state. For operators selling insurance at more than 10 locations, the fees could increase up to $500 for an initial license and $250 for each renewal.
SB 124 passed the house and senate during the 2021 legislative session and was signed by Gov. Chris Sununu on July 9.
The ability for self-storage operators to sell tenant insurance has been the focus of a primary lobbying effort by the national and state industry associations. In all, “42 states now provide a simplified licensing process for the sale of tenant insurance or have an express exemption from licensing,” according to a Jan. 10 newsletter distributed by the Self Storage Association.
SSA Magazine Weekly 1/10/22, New Hampshire, Louisiana Laws Went into Effect January 1st
The General Court of New Hampshire, Senate Bill 124