The self-storage industry has grown rapidly in the past several years, reaching an estimated market value of $44.37 billion, outpacing many other notable companies like Aflac, General Mills, Humana, and even 7-Eleven.
The reason?
People love their stuff — and they don’t want to part ways with it. According to Josh Leykam, MiniCo Vice President of Underwriting, “As the ways that Americans live and work have evolved, self-storage has evolved to meet their changing needs. We’re moving for jobs and education, living in smaller homes thanks to the rising costs of housing, and exploring more home-based businesses than ever. Office-based businesses and retail operations are reducing their footprint. Self-storage is convenient, flexible, and often a cost-effective storage solution, and these factors contribute to the increased demand.” As individuals and businesses alike face the challenges of limited space and increased mobility, the need to protect their stored assets has grown in tandem, creating a significant demand for expert self-storage insurance solutions.
With the rising use of storage units in mind, let’s take a deep dive into how retail agents can meet the complex needs of storage facilities with expertise and tailored insurance solutions.
Meeting the Rising Demand for Commercial Storage Coverage
A few decades ago, self-storage was a no-frills commodity – a convenient option for a short-term need. Today, the self-storage industry encompasses a wide and disparate range of businesses offering bare-bones 10×10 and 10×20 spaces, flexible-sized units with air conditioning, high-tech security systems, luxury enclosed storage for RVs and boats, concierge services, co-working spaces, and more. Not to mention the growing number of niche storage operations to include specialized facilities for collectors of Wine, art, antiques, and collectible cars.
Over and over, the self-storage industry has demonstrated that where there’s a need, a forward-thinking developer will create a storage solution to meet it. As such, comprehensive storage insurance has become an indispensable component of the self-storage landscape, providing solutions that not only offer peace of mind but also provide financial security against potential losses.
Savvy agents can utilize several key success strategies to effectively market and deliver specialized self-storage insurance services:
- Understand Client Needs: Dive deep into the operational challenges and risk profiles of self-storage facilities to effectively offer bespoke insurance solutions. Understanding the unique exposures inherent in the self-storage industry – from building construction to roof damage to the potential for loss due to unknown hazards in a tenant’s unit – is valuable for both you and your clients when it comes to selecting appropriate insurance coverage.
- Stay Informed on Industry Trends: Climate change, shifting market demographics, and economic uncertainty greatly impact the self-storage industry. This ever-changing landscape demands a nuanced approach to risk management. Agents can stay informed on current self-storage trends in order to provide tailored coverage to protect business owners financially and provide peace of mind.
- Seek Out Appropriate Insurance Solutions: The self-storage industry faces specific risks that make it unique in the commercial real estate market. A standard commercial insurance policy may fall short in covering these unique risks, leaving businesses vulnerable to significant out-of-pocket financial losses. Specialty self-storage insurance solutions that provide a high level of flexibility and customization play a pivotal role in protecting these businesses.
In the quickly evolving and dynamic self-storage industry, being equipped with the right knowledge and tools isn’t just an advantage — it’s essential. MiniCo’s five decades of class-specific experience is reflected in our exclusive Self-Storage Commercial program, including an industry-leading specialty BOP, monoline Property and GL options, and innovative monoline supporting solutions including a Wind/Hail Deductible Buyback program, Equipment Breakdown, Cyber, and more. Contact our dedicated program team or get a quote online.
