By Ted Dobbs
In the world of self-storage, problems can arise that are beyond the control of facility owners and their tenants. Fire, wind and water are just a few of the things that can damage a property and the goods inside its units. While these may be natural calamities, tenants often blame facility operators for the loss.
It’s a good idea to think about how you’ll resolve these disputes with tenants before they occur. A tenant-insurance or property-protection plan can make a huge difference for you and your customers in the event of a claim. By having a program in place, you’ll have a methodology for solving tenant disputes or problems.
The Benefits
Tenant insurance and protection programs insulate a self-storage owner from legal liability. They emphasize existing rental-agreement terms, which require tenants to insure or protect their own belongings. Although many renters believe their goods will be protected by their homeowner’s insurance policy, sometimes they’re not or the coverage is inadequate.
Having a program in place will also allow for a more collaborative discussion between tenants and self-storage staff when there’s a loss. In this day of social media, when customers can comment instantly on a business and reach a wide audience, it’s important for a storage facility to have good customer relations with quick and easy dispute resolution.
Finally, insurance programs can provide an additional revenue stream for self-storage owners and a potential bonus program for facility managers.
Tenant Participation
There are many ways to get your tenants to participate in your insurance or protection plan. Owners often design and implement their particular programs to mirror their company culture, demographics and employee caliber.
An effective approach many have adopted is to include verbiage in the rental agreement requiring tenants to “insure or protect their own belongings” and provide evidence of “financial responsibility” in the form of a renter’s or homeowner’s policy declarations page, or coverage by some other means. Tenants who can’t meet this standard can then be encouraged to sign up for the facility’s plan to fulfill the lease requirement.
In addition to telling tenants about the program during the rental process, post information on your website and around your facility. When introducing a new tenant-insurance or protection plan, send an e-mail or letter to all existing tenants explaining the benefits and encouraging them to talk with the property manager about signing up.
If your storage business doesn’t offer a tenant-insurance or property-protection program, now’s the time to add one. Research the plans available to determine which will best fit the needs of your operation and tenants. Help your customers be proactive in safeguarding their belongings and protect your business with a quality insurance or protection plan.
Ted Dobbs is an underwriter and protection-program salesperson for Deans & Homer, which offers programs specifically for the protection of self-storage owners and their customers. Offerings include a package policy to protect the facility, direct mail-in tenant insurance and tenant-protection programs. For more information, visit www.deanshomer.com.
