Changes Coming for Offering Self-Storage Insurance in Michigan
Update: On January, 14 2015 House Bill 4485 was vetoed by Governor Rick Snyder.
Introduced in March 2013, House Bill 4485 is now ready to be signed. You may be asking yourself, what is this and why is this important to me? If you are in Michigan, listen up. House Bill 4485 amends the Insurance Code of 1956.
House bill 4485, when signed, will change how self-storage facilities are authorized to offer insurance coverage to their tenants. Stored property insurance, as defined by House Bill 4485, is "insurance that provides coverage for the loss of, or damages to, tangible personal property contained in a storage space located on a self-service storage facility or in transit during the term of a self-service storage facility rental agreement". This bill will allow self-storage facilities to offer their tenants insurance coverage without holding an insurance producer license. Before this amendment an insurance producer license was needed in order for an individual or business to be authorized to sell, solicit, or negotiate insurance.
According to the Senate's summary of the bill, the following information must be provided to the tenant at the time of offering insurance.
*A disclosure that the insurance might duplicate coverage already provided by the customer's renters, homeowners, or other insurance policies.
*A summary of the material terms of the insurance coverage, including:
The identity of the insurer
The benefits of the coverage
The key terms and conditions of the coverage.
*A summary of the process for filing a claim.
House Bill 4485 will make it easier for self-storage facilities to offer coverage to their tenants. It allows the self-storage facilities to sell insurance without holding an insurance producer license. A license will not be needed as long as the sale of insurance is for stored property sold in connection with the rental of a storage unit at a self-storage facility. Interested in reading House Bill 4485? Click here for the entire bill.