risk management: tip of the week

Requiring Tenants to be Insured

Self-storage tenants who have purchased the facility’s tenant insurance or elected to utilize another insurance policy that offers this coverage are less likely to attempt to make a claim against the facility in the event of loss or damage to their stored goods. The insurance provides them recourse to be made whole that does not involve the facility.

One strategy a self-storage operator can implement is to require all tenants to purchase some form of insurance. Customers are required to purchase the facility’s tenant insurance program unless they can provide proof of insurance such as through a homeowner or renter policy. This requirement may be incorporated into the lease contract itself.

Please note that you should always consult your attorney before making changes to your lease contract. It is also recommended that you speak with your attorney and insurance agent to ensure that you fully understand your state’s laws concerning tenant insurance.

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Sincerely,

Mike Schofield

Mike Schofield
President & CEO

MINICO INSURANCE AGENCY, LLC
Member ARAN Insurance Services Group

10851 N. Black Canyon Highway, Suite 200, Phoenix, AZ 85029