Summer is here again, and if you haven’t hit the road with an RV or boat in tow this year, you probably know someone who has.

According to the latest information from the Recreation Vehicle Industry Association (RVIA), nearly 8 million U.S. households own at least one RV, and that number is expected to increase to 8.5 million by 2010. The boating industry is also reporting record ownership numbers. The National Marine Manufacturers Association (NMMA) estimates that there are over 13 million boats registered in the United States. And no one is happier about these numbers than the self-storage industry.

The number of self-storage businesses adding RV and boat storage spaces to their existing facilities is growing rapidly, as is the number of new facilities being constructed exclusively for the storage of these vehicles. As an independent insurance agent writing the self-storage market, you should be aware of the unique exposures these businesses face. If you have a self-storage client who is operating a facility that allows RV and boat storage, it may be a worthwhile endeavor to take the time to review the operation’s rental agreement with the property owner and his attorney to ensure that potential exposures are being addressed adequately.

Here are some of the risks that are critical for self-storage business owners to address in their rental agreements:

• Proof of Ownership – The person signing the self-storage rental agreement should be the registered owner of the vehicle. At a minimum, the facility should retain a copy of the vehicle title or registration and a copy of the owner’s driver’s license.

• Vehicle Identification – Self-storage facility staff should make note of the stored vehicle’s year, make, model, color, license plate number and state, and VIN number. The VIN number on the vehicle should be examined to ensure it is the same as that reported on the title or registration.

• Proof of Insurance – At a minimum, a facility should require proof that the vehicle owner has purchased physical damage and liability coverage for the vehicle.

• Limitations of Liability – The self-storage rental agreement should state a limitation of liability on the value of the vehicle stored, particularly if the facility provides indoor vehicle storage.

• Vehicle Exchanging – It is common for RV owners to drive a vehicle to the self-storage facility and leave it parked in the rented space after driving away in the RV. Self-storage facility owners may anticipate this by adding the additional vehicle to the rental agreement at the time of lease and collecting all pertinent information about that additional vehicle.

MiniCo, Inc. has been the leading provider of specialty coverage for self-storage businesses since 1974. For more information about RV and boat storage exposures, contact your underwriter at 800-447-8383 or e-mail marketdevelopment@minico.com.