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Be an Ally! How to Help Your Self-Storage Tenants Through the Claims Process After a Property LossBe an Ally! How to Help Your Self-Storage Tenants Through the Claims Process After a Property Loss
A catastrophe can happen at any self-storage facility, including yours. If it does, it’s extremely helpful if your renters have tenant insurance or a tenant-protection plan to mitigate their loss. Still, they will be upset and in need of guidance. This article will empower you to help your customers navigate the claims process, so you can be an ally in their time of need and minimize negative outcomes.
6 Min Read
In the self-storage industry, tenant insurance and tenant-protection plans are designed to provide coverage for stored goods and peace of mind for facility operators and renters. When something goes wrong and a customer needs to file a claim, the way you handle the situation can significantly impact their level of satisfaction and your facility's reputation.
It’s important that you facilitate the claim process and maintain trust with your tenant. Let’s walk through the steps of helping your customer in their time of crisis. They’ll create a clear roadmap for navigating these situations with professionalism and efficiency.
Understanding the Programs
It’s important to understand the distinction between tenant insurance and tenant protection, as the claims process can vary significantly, including the legalities involved and your responsibilities as the self-storage operator.
Tenant insurance is underwritten by an insurance company. The customer pays a monthly premium, and in the event of an incident, the insurance company assesses and processes the claim. Coverage levels, costs and returns are dictated by the provider, not your self-storage operation. You should also be licensed to confidently and legally sell this coverage at the time of rental.
A tenant-protection plan is provided by your self-storage business, which accepts limited liability for stored items and insures it through a Contractual Liability Insurance Policy. This product isn’t insurance, though it does offer coverage up to a certain amount. There’s no license required to sell. Coverage levels and monthly fees are determined by your company. If there’s a claim, it goes directly to your business.
Step 1: Educate Yourself
Before any of your self-storage renters experience a loss and need to file a claim against their tenant-insurance policy or tenant-protection plan, make sure you and your team are educated on the product and process. First, know the details including covered perils, exclusions and coverage limits. Familiarize yourself with the steps involved in filing a claim, from the tenant’s perspective and your own. This will help you guide customers effectively and ensure that you fulfill your responsibilities.
Finally, stay up-to-date. Policies and plans can change, so watch for modifications introduced by your insurance provider or corporate office. Schedule regular training sessions with insurance representatives to keep your knowledge current. Create a quick reference guide with key details of each program for easy access.
Step 2: Communicate With Tenants
When a self-storage tenant suffers damage to or loss of their stored goods, clear and empathetic communication is key. They’re likely stressed, and a complicated or confusing claims process can exacerbate their frustration. Here’s what to do:
Start by listening to the tenant’s concerns. Show empathy and understanding by acknowledging their situation.
Walk them through the claim process, clearly outlining the information they need to provide, such as photos of the damage, a list of lost items or a police report, if applicable. (More on this below.)
Inform them about the expected claims timeline. Whichever program you offer, managing expectations will help reduce frustration.
Use a standardized communication template to ensure that all relevant information is conveyed in every interaction.
Keep records of your communication. Note the dates, times and details of each discussion, which can be helpful if there are disputes or follow-up is required.
Step 3: Assist Tenants With Documentation
The success of a tenant-insurance or -protection claim often hinges on proper documentation. Your role as the self-storage operator is to ensure the customer provides all the necessary information and that it’s submitted correctly and promptly. Required items generally include:
Claim form: Ensure the self-storage tenant completes the form provided by your facility or the insurance company.
Proof of ownership: They may need to provide receipts, photographs or other proof that they owned the damaged or lost items.
Evidence of damage/loss: Encourage the tenant to take photos of the damage or the area where the loss occurred. If possible, help them with this to ensure nothing is missed.
Police report: This is typically required if the loss involves theft or vandalism. Guide the customer on how to file this report if they haven’t done so already.
Witness statements: If applicable, collect statements from any observers to the incident.
To further assist your self-storage tenants, give them a checklist of required documents as soon as they report a loss, and offer digital submission options to speed up the process. You might even advise them prior to move-in to document all of their stored belongings. This can be as easy as taking date-stamped photos or video.
Step 4: Coordinate With the Provider or Claims Department
Once the documentation is ready, the next step is to connect with the insurance company or your company’s claims department, depending on the program. For tenant-insurance claims:
Send all required items to the provider as soon as possible. Get a record of the submission.
Maintain communication with the insurance company. If additional information is required, relay this to the tenant promptly.
Advocate for the tenant by ensuring the insurance company processes the claim in a timely manner.
Keep the tenant informed of any updates or requests from the provider.
For tenant-protection claims:
Send all documentation to your company’s claims department. In some cases, your tenant-protection plan provider may offer an adjuster who can help handle the claims process.
Someone from your company may inspect the unit and any damaged property personally to verify the claim.
Your company will approve or deny the claim based on the policy’s terms and the evidence provided.
If the claim is denied, provide a clear and detailed explanation to the tenant. If it’s approved, arrange for compensation, whether it’s a payment, repair or replacement.
Keep detailed records of every step for legal and record-keeping purposes. Consider using a claims-management system to track progress and ensure nothing falls through the cracks.
Step 5: Handle Disputes Professionally
In some cases, a self-storage tenant may dispute the outcome of a claim. Handling these situations professionally is crucial to maintaining a good relationship with the customer and protecting your business reputation. Here are the steps to take:
Listen to the tenant’s concerns. Allow them to express their dissatisfaction fully. Listening is often the first step toward resolution.
Review the claim. Reassess the application, ensuring that all documentation and procedures were correctly followed.
Seek a resolution. If possible, find a middle ground that satisfies both parties. This could involve offering a partial settlement or revisiting the claim with additional evidence.
Escalate if necessary. If the dispute can’t be resolved at the facility level, take it to higher management or legal counsel as appropriate.
Throughout the process, maintain a calm, professional demeanor, and avoid making promises that can’t be kept. Focus on clear, factual communication. Your company might even have (or can implement) a dispute-resolution protocol that outlines steps and timelines for handling tenant complaints. Training in conflict resolution techniques will also help you de-escalate situations effectively.
Ensuring a Smooth Claims Process
Handling tenant-insurance and -protection claims is a critical aspect of managing a self-storage facility. By following the above steps, you can ensure the process is carried out efficiently, fairly and professionally. Proper training, clear communication and a thorough understanding of your company’s policies will help protect the business’ reputation and maintain tenant trust. You can then handle claims with confidence, turning potentially negative experiences into opportunities to reinforce the value of your services and the integrity of your business.
Stacie Maxwell is director of insurance for On The Move Inc. She joined the company in 2024 following a 23-year tenure with consulting and management firm Universal Storage Group, where she served most recently as vice president of marketing and training. In this role, she oversaw brand management, design and marketing for the company’s 70-plus storage facilities as well as led its manager-training program. To reach her, call 830.443.3023 or email [email protected].
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