Storage Insurance

[Shortie720]

I'm sure this is in the Forum somewhere, but couldn't find anything.
Our facility does NOT offer insurance to our renters. It is in the rental agreement that we do not cover anything due to loss and their responsibility to insure their own property. Its highlighted, tenant initials, then tenant signs addendum.
What I'm curious about is if I offer places that carry storage insurance for the renter to check out themselves, does that open us up to a liability?
(After reading about the Vehicle owner getting sued because a mechanic was killed while changing oil in a car at an express lube, it got me thinking).

[Storman]

I also do not offer "insurance" over the counter, because it is NOT "insurance". I tell people to contact their homeowner or renter insurance carrier to add their storage space to their coverage, usually free of charge. I would not point them to a specific provider, no need to risk exposure when there's zero upside for doing so.

If they want to research insurance, that's on them. Not my concern, I just want to make sure they know they're on their own and I don't carry it for their stuff.

[AngelaESSTX]

Same as Storman . I don't recommend any company but I do advise them they can use their homeowner's or renters and advise to take pics as they load their unit for that purpose. It's the same reason I won't even recommend a moving company to anyone.

[Shortie720]

Thank you Storman!

[Foxes Den]

We tell them we do not offer insurance, but we highly recommend it

[helenatim]

As long as your Rental Agreement clearly states that the contents of units are not covered, you should be safe. Given the discrepancy in value of the things that people store, you couldn't possibly cover their contents. And I think the customer should be able to decide if they want coverage or not.
I know some facilities require tenant insurance. We haven't gone that route yet, but we do offer coverage. And it brings in revenue. And the company has paid out when theft or damage has occurred.

[KrisinCali]

I'm sure this is in the Forum somewhere, but couldn't find anything.
Our facility does NOT offer insurance to our renters. It is in the rental agreement that we do not cover anything due to loss and their responsibility to insure their own property. Its highlighted, tenant initials, then tenant signs addendum.
What I'm curious about is if I offer places that carry storage insurance for the renter to check out themselves, does that open us up to a liability?
(After reading about the Vehicle owner getting sued because a mechanic was killed while changing oil in a car at an express lube, it got me thinking).

I saw that story too! Crazy stuff. I think a judge should throw that out, or the guy countersues the oil change place.

[KeelHauler1994]

If it is important enough to store, it is probably important enough to insurance. Your state self storage statutes may have some wording that insurance is required to rent and that it must be paid for by the tenant - my state statutes describe this. Tenant provided/paid insurance is a condition for renting at my facilities. We offer 3rd party insurance, not a protection plan. There is usually an incentive to offer 3rd party insurance. The company went from under $10,000 combined in annual 3rd party insurance a number of years ago to six-figures. Depending on the incentive, it may pay for one or two employee salaries. No all insurance options are the same, so you have to do some homework and you can not force the 3rd party insurance on a tenant, they can provide valid proof of coverage from their own carrier or purchase a policy. If you offer insurance, you may have to register with the National Insurance register (I can not remember the initials for it at the moment) and have a short training session with the employees that will offer the insurance (my state does not require a license for self storage insurance sales).

*My opinion is my own and your state laws/statutes will differ from my state. You will need to do research to be in compliance of your state laws and if you need to offer insurance.