Tenant Insurance Benefits for Self-Storage Operations
Offering affordable, short-term insurance to tenants is a value-added service your facility can provide that requires minimal administrative effort on your part. Tenants need to insure their own stored goods, and tenant insurance programs provide a low-cost way for them to protect their items against perils such as fire, burglary, lightning, windstorm, hail, water damage, smoke, earthquake, and explosion. Flood coverage is a common exclusion on tenant insurance policies.
Purchasing tenant insurance helps customers avoid making claims against their homeowner insurance policies in the event of damage to or loss of their stored items. Most tenant insurance programs offer a wide range of coverage limits and no deductibles while homeowner policies may include high deductibles and coverage limitations that could impact the result of a claim settlement related to a storage unit loss.
Self-storage businesses benefit from tenant insurance as it provides an indirect protection against claims and lawsuits in the event a customer experiences a loss. Tenants who have purchased tenant insurance typically will go directly to the insurance provider to file claims rather than attempt to seek restitution from the facility.
When selecting a tenant insurance program, keep these guidelines in mind:
• Choose a program backed by a carrier rated "A" by A.M. Best that offer policies where the forms and rates are issued on admitted paper filed and approved by the state.
• Consult your attorney and insurance agent to ensure that you fully understand your state's laws concerning tenant insurance licensing and training requirements as well as any proposed changes to your rental contact.
• When switching to a new tenant insurance provider, be sure to notify tenants in writing about the change.
Contact James Appleton at jappleton@minico.com or 800-528-1056, ext. 3532, for more information about MiniCo's tenant insurance programs.
|