Should Self Storage Owners’ Offer Renter’s Insurance?

An important subject to be addressed by you, the self storage facility owner, is whether or not to offer renter’s insurance. If you choose not to hassle with this, no big deal, but you should, at the very least, have on hand a source of information directing customers to where they can locate an insurance company specializing in belongings stored away from the home. The big picture is that you need to be able to solve as many problems for renters as you can, thus preventing them from finding solutions (and spending money) elsewhere.

The reason renter’s insurance is even an issue is because some people store high dollar stuff in your units. In addition to feeling like the facility is secure, they want to know they will be reimbursed if the worst comes to pass. We’re talking about fires, hurricanes, tornadoes, earthquakes, smoke, lightning, hail, vandalism, building collapse, water damage, burglary or even, god forbid, an explosion.

For some, simply adding a rider onto their home insurance policy might be the easiest way to go. Others could choose to go with an insurance company that specializes in covering storage facility belongings. The cost isn’t likely to be much and you’ll probably be able to choose different levels of protection. For example, Safestor offers the following:

  • $4,000 coverage for $6 monthly
  • $10,000 coverage for $18 monthly
  • $15,000 coverage for $24 monthly

As you can see, the cost of insuring your goods isn’t prohibitive, and might seem like small change indeed if a calamity ever occurs. Keep in mind that your own insurance company may be able to beat these rates if you ask them about it. The bottom line is, as a small business owner, you’re in the problem solving business. Solve problems for your customers and they’ll continue to give you their business. Stand there with a blank look on your face when they ask about renter’s insurance and you might as well be telling them you hope they head straight to your competitor.

If you decide not to offer the insurance yourself, at least have on hand brochures directing them to other sources of information. There’s also a chance that goods stored offsite might still be covered under a traditional homeowner’s insurance policy. Once again, the solution to the problem could be as simple as a phone call to an agent.

The Commercial Investing Team

 

 

 

 

 

Flickr / woodleywonderworks

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