It is up to the self storage operator to decide whether to offer minimal tenant insurance for a fee or require the tenant to obtain outside insurance. Owners and operators should carry insurance for themselves as well. It is a matter of purchasing piece of mind in the event of fire, flood, rodent/insect infestation or theft. The latest business to offer a full-range of coverage is Storage Business Owners Alliance LLC (SBOA).
SBOA has launched a new tenant-insurance program that provides coverage benefits to self storage owners and tenants. Available to all owners and operators, SBOA Tenant Insurance offers the facility owner a minimum $4 administrative fee per policy sold per month.
With more valuable belongings winding up in self storage nowadays, tenants are increasingly aware and interested in insurance for their belongings. As the purchasing of goods increases and space in homes decreases, the demand for self storage is ever growing. And many valuable items are now winding up in storage units, as witnessed on shows like A&E’s “Storage Wars.” How to protect their belongings is of great concern to renters. And tenants usually depend on the self storage owner or manager to advise them on insurance matters.
That’s were businesses like SBOA step in. Coverage levels for the SBOA insurance program include $2,000, $3,000 and $5,000, as well as a deductible for covered claims. The program has already gained more than 700 self storage customers.
Self Storage owner-operators Ian Burnstein, Michael Haugh and David Levenfeld collaborated to design the SBOA insurance program. Industry executive Mario Macaluso, with nearly 50 years of combined industry experience, now serves as the program’s vice president of sales. The team built the new tenant-insurance program from the ground up while stressing generous administrative fees at the facility level.
“It is our goal to increase not only the amount our owners receive per policy, but also to increase the number of policies sold,” said Meghan Shipley, former client services manager for U-Store-It. She now acts as administrator for the SBOA program and is responsible for coordinating a training program to facilitate the transition of any owner and manager into the program.
Administered by Cornerstone Operations Group, the program handles all policies and claims. The insurance coverage is provided by AEGIS, licensed in all 50 states and rated excellent by A.M. Best Company, an insurance-company rating agency.
Sources Used:
“Storage Business Owners Alliance Launches Tenant-Insurance Program.” Inside Self-Storage. March 3, 2011.
Kim, Kilpatrick. “As Self Storage of Valuable Belongings Increases, So Must Knowledge of Tenant Insurance.” Self Storage Industry News. Feb. 1, 2011.