Protect Yourself and Your Customer with Tenant Insurance

Has your city been inflicted with a case of the Nor'easter?  Arctic like temperatures, the polar vortex, blizzards and record setting snowfall have been hitting parts of North America recently. This freak weather has been causing destruction and property loss along the way. Imagine the customer coming to you after their items are damaged; are you protected? There have been precedent-setting court cases where it was ruled that a storage facility was not responsible for a customer’s loss, based on that facility providing the option to insure the customer’s goods. For example, Kane v. U-Haul. The tenant’s goods were damaged while stored at a U-Haul self-storage facility. The tenant went after U-Haul to cover the cost of the damaged goods. At the time of move-in, the tenant was offered insurance, but declined. They signed the addendum/lease agreement saying they did not need coverage. Because the tenant was offered tenant insurance and declined, the court ruled in favor of U-Haul. Even if a lawsuit is without merit, your facility must still defend against it. Without tenant insurance, your customer is going to look to you, the owner, for some sort of compensation. Protect yourself, while protecting your customer, by offering tenant insurance.



Benefits of offering tenant insurance

  • Reduce your liability: Offering tenant insurance reduces the liability exposure at your facility. If a customer elects tenant insurance coverage, the liability is now shifted to the insurance company and away from your facility.
  • Increase your revenue stream: With most insurance companies, you receive an administrative fee for each customer, which increases the revenue at your facility. This administrative fee is typically paid every month.
  • Increase your property value: Increased revenue from tenant insurance will increase the value of your facility. The more money your facility makes, the greater your property value.
  • Protect your customer’s goods: Tenant insurance frequently protects against loss from perils such as burglary, tornado, vermin and hurricane. It's good customer service.
  • Discounted property insurance: Many property insurance providers offer discounts for offering tenant insurance. This will help reduce your property insurance premiums. The reduction in premiums comes from reducing the Customer Goods Legal Liability exposure at your facility.
  • Improved customer service: Offering tenant insurance increases the range of services that your facility provides and increases the customer's overall experience. 



Tips to succeed when offering tenant insurance

Here are several common practices self-storage operators have implemented to succeed with offering tenant insurance:

  • Assume that every customer needs tenant insurance. Don’t ask a “Yes/No” question, but rather ask “Which coverage works best for you today?”
  • Continued employee training. Even professional athletes need to attend training camps before each season. The same should hold true for your employees when offering tenant insurance. Training programs should be available through your tenant insurance provider.
  • Remember your employees are offering tenant insurance. They should not be giving advice, or answering questions.
  • Contact current tenants that are not signed up for tenant insurance. It is never too late for your tenants to sign up for a tenant insurance policy. Have the tenants pick up a brochure that explains the benefits of tenant insurance.



How to start

If you are not actively offering tenant insurance to every customer, now is the time to start. Take the first step by contacting a tenant insurance company and setting up a webinar. Allow the experts to educate you on the ins and outs of tenant insurance.

Casey Huberty

Casey Huberty

If you'd like to learn more about tenant insurance, please contact Casey Huberty from the Ponderosa Insurance Agency at 1-866-303-3990 or chuberty@ponderosainsurance.com.