4 Reasons Why Insurance Agents Should Give Self-Storage Risks a Closer Look
Self-storage is a superstar in the commercial real estate market. Over the past half-century, the industry has proven itself to be resilient to the vagaries of consumer trends, economic recession, and even global pandemic. As the industry continues to grow, so do the opportunities for agents and brokers. Take a peek behind the rollup doors to learn more.
1. Strong Industry Metrics
The self-storage industry in the United States generates an estimated $39.5 billion in revenue and includes over 49,000 facilities and 1.9 billion square feet of rentable space according to the most recent industry data compiled by SpareFoot. That’s nearly six square feet of storage space for every person in the U.S. Just over half of these businesses (52%) are owned by small operators, making them prime opportunities for independent agents.
2. Proven Economic Resilience
The demand for self-storage space increases year after year, with the exception of the early days of the recession in 2007 and 2008. The initial shock of economic turbulence caused a decrease in residential and commercial customers, only to reverse course as consumers downsized their living arrangements and businesses downsized or vacated commercial space and required a storage solution for equipment and inventory.
3. Leaders in Automated and Touch-Free Service
When it came to responding to the requirements of the global coronavirus pandemic, the self-storage industry was ahead of many businesses. The industry has long embraced automation and touch-free customer service through self-service kiosks, online reservations and leasing, and online payment systems. In addition, the average self-storage facility typically is staffed by only one or two employees at any given time.
4. Growing Consumer Demand
In the industry’s 50-year history, self-storage has proven to be a service trusted by consumers at a wide range of personal milestones and economic changes such as downsizing, upsizing, moving and college breaks. According to SpareFoot, 11% of U.S. households currently rent storage space. Business customers rely on self-storage facilities to house inventory, equipment, files, and more.
Opportunity for Insurance Agents
Agents and brokers have a wealth of opportunity when it comes to partnering with self-storage businesses to ensure they have the insurance protection they need. While these operations are commercial businesses, a standard BOP requires multiple endorsements to address risks unique to the industry.
MiniCo leads the industry when it comes to insuring self-storage operations. We created the first package policy for self-storage risks nearly 50 years ago and continue to innovate as the industry grows and faces new challenges. In addition to our specialty BOP, we offer supporting monoline coverages including cyber liability, equipment breakdown, workers’ compensation, and a wind and hail deductible buyback program. MiniCo has the market expertise and underwriting flexibility to cover a wide range of self-storage risks. Please contact us for more information or visit www.minico.com.