Importance of Insurance Agencies for Self-Storage Businesses

By: Mitch Laursen, USstoragesearch.com

As a customer of a self storage facility, you are entitled to insurance in case your belongings are damaged during the storage process. You can either use insurance offered from your designated self storage facility or you use an outside insurance agent to help protect items in your rented storage unit.

From the self storage business’s point of view, insurance is just as important. Do you know who pays for damages if the customer damages the storage facility during rental? What if the storage facility is damaged, but not by the customer? How much do storage facility insurance agents cover?

You might be surprised that some insurance agencies that serve storage facilities and their customers at the same time. Nationwide is a popular insurance agency that provides self storage insurance options to storage facilities and customers. According to their website, Nationwide offers self storage facilities coverage for theft and weather or customer damage to the storage property.

The other options of self-storage insurance for businesses are agencies that only service commercial clients, which usually offer very similar services as agencies with multiple kinds of customers (like Nationwide). The difference probably includes coverage with lower rates and better customer support.

Sometimes insurance agencies require self-storage companies to increase their security in order to maintain coverage.

One of bigger insurance agencies that primarily uses self storage facilities as clients is StorageFirst, which (as found on StorageFirst.com) offers many unique services to its clients including:

  • Replacement cost coverage on buildings and personal self storage business property
  • Blanket limits (single limit of insurance for more than one location) for buildings, BPP, and BI
  • Agree value, with no co-insurance (splitting the costs of certain bills with the insurance agency)
  • Fencing and gate/s costs

Just like when individuals sign on with insurance agencies and have to follow a list of rules, business are required to follow just as much. Where the self-storage business has built the facility and with which materials the business used for building are common rules asked by agencies. Background checks are also usually made for self storage units prior to the insurance agency taking the storage business as a client.

Self storage insurance is extremely important for storage businesses. Not only may it be a requirement for certain cities/states to have, but it also increases credibility, safety, and sales amounts from facility customers.

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