Customer Storage Insurance

Help protect yourself against litigation

By David Wilhite

Every self-storage facility owner/operator is subject to litigation from tenants whohave suffered damage to their goods while in storage. Fortunately, our courts havegenerally held that one acceptable defense strategy is to offer customer storage insurance(CSI) to your tenants. That's why most savvy self-storage operators offer a CSI program,which can help reduce or eliminate a major insurance exposure while providing a valuableservice to tenants. By making CSI available, you can help reduce the likelihood oflitigation for damages to your tenants' stored goods.

What exactly is customer storage insurance? It is an insurance policy specificallydesigned for tenants, the customers of self-storage facilities. It typically providesshort-term, low-cost coverage for specified perils, such as fire, hail, wind, lightningand other covered causes of loss. It usually also provides a limited amount of burglarycoverage. (Note that while most homeowners' policies will provide a limited amount ofoff-premises coverage, most self-storage tenants are transient by nature and do not havehomeowners' policies). CSI can protect your tenants' stored goods while ensuring yourpeace of mind. By simply making CSI available, you can help reduce the threat oflitigation for damages to your tenants' stored goods.

It Pays to Know the Facts About CSI

Fact: All self-storage facility owners/operators are subject tolitigation from tenants who have suffered damage to their goods while in storage.

Fact: One of the key elements in any legal defense against claims ofnegligence or liability (on the part of the operator) is whether or not customer storageinsurance was made available to the tenant while he was renting storage space.

Fact: Today's judges are more likely to uphold the exculpatoryprovisions contained in your self-storage rental agreement when you make CSI available toyour tenants.

Fact: There are precedent-setting court cases in which theself-storage operator was found to be not liable for damage to a customer's goods becauseCSI was made available.

Fact: Customer storage insurance must be considered a necessity andshould be made available to every tenant.

What Does Storage Insurance Cover?

The availability of a comprehensive CSI policy is the easy, low-cost way to protectyour tenants' stored goods from loss or damage from a wide variety of perils. Tenantsvaluables can be protected for amounts that typically range from $2,000 to $20,000, andpolices can generally be written or renewed in three- or six-month periods. Standardcovered perils generally include fire, lightning, smoke, burglary, water leaks, hurricane,explosion, tornado, building collapse, wind, hail, earthquake and vandalism.

No matter how large or small your self-storage facility may be, securing adequatecoverage is essential for protecting your business and your peace of mind.

It is vitally important that customer storage insurance (CSI) be made available toyour tenants in order to reduce your exposure to claims of negligence from those personswho have suffered damage to their stored goods. Universal Insurance Facilities Ltd.provides low-cost, A-rated CSI that will protect your tenants' stored goods as well asensure your peace of mind. Universal's program is professionally staffed and underwrittenby Ranger Insurance, one of the industry's top carriers. The company's CSI coverage may bepurchased at any time by new and existing tenants, and there is no cost, paperwork orprogram maintenance for you. A sample of the actual CSI policy with exact terms andconditions is available upon request. For more information, call (800) 844-2101. Note:Universal does not offer CSI in Florida or Kentucky.