There is one thing that people hate to spend money on, but would not ever do without—insurance. We get insurance for our health, our teeth, and our cars. We get insurance on packages we send through the mail of significant value. Depending on the type of work your in there are several other types of insurance that people buy all the time, often spending a lot of money too.
The funny thing is that more often than not we essentially are just giving our hard-earned money to the insurance company for nothing. However, while we get nothing tangible in return for our insurance premiums what we do get is piece of mind.
In the self storage industry there are a number of different types of insurance that owners and operators need to have in order to protect themselves and the business from legal issues that could cost thousands of dollars. Owners and operators are not the only who should carry insurance; tenants should as well.
Tenant insurance is similar to renter’s insurance (like you can get when you live in an apartment). If for whatever reason your property gets damaged or destroyed while in storage then you don’t have to worry about replacing your things.
Why should I tell my tenants to spend more money by getting insurance? Doesn’t what I have cover losses suffered while their belongings are in my self storage facility’s possession?
Yes and no; it all depends on exactly what insurance coverage you do have as to what type of damages are covered. That’s why it’s a good idea to suggest your tenant’s get tenants insurance in order to insure that they will be able to recoup their losses in the even that tragedy does strike.
A few years ago people in the New Orleans area were sure glad they had tenants insurance when Hurricane Katrina struck. Those that were using a self storage facility then are as happy as the ones that were using one in May of 2009 when a tornado ripped through parts of town.
Folks in Metairie were hit pretty hard by that tornado. A local self storage facility, Metro Self Storage , had property in 100 units get destroyed from the winds and rain. Part of what made the horrible experience a little better to handle was that many tenants had the insurance that executive vice-president Brian D. Blankenship had suggested. Part of it was also the quality of the carrier that he had selected.
“The site was a nightmare,” said Blankenship. “But the insurance response team was great. They met with our customers, and settled most claims right there. It was also one less worry for my team.”
It might seem like expensive piece of mind to buy, but when tragedy happens you’ll sure be glad you have it. Your customer’s will appreciate you for suggesting it as well.
“Recovering from Natural Disaster: Self Storage Operators and Customers Bounce Back Quicker With Tenant Insurance.” Inside Self Storage; 13 January 2011.
“”Guidelines for Choosing a Self Storage Tenant Insurance Partner.” Inside Self Storage; 28 October 2010.
“Self Storage Facilities and the Importance of Insurance.” Self Storage Industry News; 12 January 2011.