Most homeowners or apartment renters insure the possessions in their dwelling from theft or damage – but many don't think that far when it comes to self-storage space.
As a self-storage facility owner, you have a responsibility – and an opportunity – when it comes to making sure your customer's possessions are protected. There are two main ways to make sure their insurance needs are being met.
Insurance Needs Of a Self-Storage Renter
You're On Your Own Solution
The first method is to make the new customer aware you're not responsible for protecting what they store with you and offer them a brochure for a reputable company they can contact to insure their belongs. You're out of the loop, you don't collect the insurance premiums and the tenants contact the carrier personally to set up the coverage.
Obviously, you have to explain explicitly that the coverage is their responsibility – and you can't control how they handle the situation. They can choose to forego coverage altogether. Do your best however, to make sure they understand the importance of getting the tenant insurance and what can happen if they don't.
We've Got You Covered Solution
The other tenant insurance model is a “Pay-With-Rent” program. This is a lot like when you rent a car, and you check off the box that adds the cost of extra insurance to your car rental price. The cost of the premium is included in their monthly storage space rental charge.
This is clearly the most convenient way for the consumer to obtain necessary insurance and the best way for the self-storage facility to entice them into getting coverage. Some owners even require customers to get insurance as part of their rental agreement.
The “Pay-With-Rent” situation is a win-win for consumer and storage renter alike. Tenant participation is a lot higher when insurance is simply a part of their rental arrangement and they don't have to make separate arrangements with a third party provider. Having more customers protected also boosts the overall protection of your business.
And finally, the “Pay-With-Rent” model allows you to charge an administration fee to your customers for handling all the additional insurance arrangements. This can be a terrific extra stream of revenue – especially since you should be able to cut a good deal with the insurance provider as their company is the main option for your customers.