Crime is likely to affect you as an investor. Vandalism, accidents or burglary can occur at self-storage centres. Self-storage facilities are prime targets because they store a wide range of items. You should offer insurance to your tenants. Self-storage facilities, no matter how well run they are, can still be at risk. In a survey conducted in 2002, 25 percent self-storage operators from the U.S. reported that they were victims of theft or an armed break-in. Despite the fact that rates have dropped in recent years your facility may be targeted while you are running it. It is important for self-storage facility owners and managers to offer their tenants optional coverage in addition to doing everything they can to prevent crimes and keep the self storage facilities clean and secure.
Consider offering your tenants coverage against loss, damage or theft. Tenants are not covered by the self-storage insurance policy. Your agent will either be able to provide you with options, or point you in the direction of an insurance company who offers them. Offering coverage to tenants is the best way to reduce your own liability. The concept of self-storage is complex, and many tenants don’t know that they are responsible for protecting their possessions. Self-storage providers are likely to be blamed if anything happens to their belongings.
It is still possible to be sued, even if the lease states clearly that the facility will not be responsible for any client property. Most courts will reduce the liability of facility owners if a tenant is insured immediately. You will see a higher rate of customers renting storage space if you provide tenant insurance. Customers are usually going through some sort of life change and don’t need another burden. They also value the items they store. You can make your customers feel more confident about renting self-storage space by offering them insurance. When offering tenant insurance to tenants, it is important to remember that some insurance companies will pay a small commission for the sale or administration of their program. This can help increase the bottom line of a business, and its value. Even though the amount paid by the insurer to the owner may differ, it is still a significant sum.