In a recent blog, we looked at how self-storage insurance evolved from basic brochures into a multibillion-dollar industry. That growth opened the door for something new: tenant protection plans. While traditional tenant insurance programs are still a popular option, protection plans are now rapidly becoming the hottest topic in the self-storage industry.
Why Protection Plans Took Hold
Traditional tenant insurance works, but the administrative component can be time-consuming for carriers, program administrators, and facility managers. Each tenant has to be issued an individual policy that is renewed monthly, the rates are fixed, and, in the case of pay-with-rent programs, the insurance provider must wait for monthly reports to be submitted by each facility location.
Protection plans are fundamentally different and offer benefits for all parties. Instead of insuring each tenant directly, self-storage business owners agree via an addendum to the lease to cover tenant goods up to a specific limit. The risk is then transferred to a Contractual Liability Insurance Policy (CLIP), which ultimately pays any claims. The result? Less red tape, more flexibility, and a clear revenue advantage since protection plan revenue is considered extra rent, not premium. Facility owners can charge whatever they feel the market will bear, versus a fixed/filed rate like in a tenant insurance product. With protection plans, business owners have control over pricing and the ability to “control their own destiny” in a way that tenant insurance programs don’t allow.
What Agents Need to Know
While many industry sources emphasize that a tenant protection plan is “not insurance” for the tenant, it absolutely is insurance for the facility owner. Protection plans are backed by an insurance policy, the CLIP, and agents can offer valuable guidance in identifying the provider that offers the most appropriate policy terms for their self-storage clients.
That means agents aren’t merely offering an add-on product. They’re helping clients navigate terms, pricing, and carrier options to find the program that best aligns with their operations. As they would with property or liability coverage, agents can compare CLIP options and position themselves as the advisor who sees the full picture.
You may be wondering, “Can agents earn a commission on the CLIP?” The answer: it depends.
MiniCo: Your Tenant Protection Plan Partner
MiniCo is the first in the industry to include retail agents in its protection plan submission and binding process. Historically, protection plan providers have relied on distribution direct to self-storage business owners. MiniCo’s exclusive Self-Storage Tenant Protection Plan program is different. James Appleton, MiniCo’s Director of Program Sales, put it this way, “This is the only insurance product in self-storage where agents can directly impact their clients’ bottom line.” He continued, “MiniCo’s program distribution model includes agents because we understand and rely on the valuable role they play in the process.”
If you have self-storage accounts, MiniCo would love to talk to you. Contact us to learn more about the program and leverage this unique opportunity for you and your clients.
