January 19, 2024

As a self-storage facility owner, protecting your investment is paramount. The right insurance coverage can safeguard your business against unexpected events and liabilities. However, understanding how to maximize your insurance coverage is crucial to ensuring you have adequate protection without overpaying. Here are some practical tips to help you evaluate and optimize your insurance coverage.

  1. Assess Your Risks

Before selecting an insurance policy, conduct a thorough risk assessment of your facility. Consider factors such as:

  • Location: Are you in an area prone to natural disasters like floods, earthquakes, or hurricanes?
  • Security: What measures do you have in place to prevent theft and vandalism?
  • Facility Condition: Are there any structural issues or maintenance concerns that could lead to accidents or damage?


  1. Choose the Right Types of Coverage

Self-storage facilities require a variety of insurance coverages to ensure comprehensive protection. Key coverages to consider include:

  • Property Insurance: Covers damage to the physical structure of your facility and its contents.
  • General Liability Insurance: Protects against claims of bodily injury or property damage that occur on your premises.
  • Business Interruption Insurance: Covers lost income if your facility is temporarily unusable due to a covered event.
  • Cyber Liability Insurance: Protects against data breaches and cyber-attacks, especially important if you store tenant information digitally.
  • Natural Disaster Coverage: Specific policies for floods, earthquakes, and other natural disasters, depending on your location.


  1. Understand Policy Limits and Exclusions

Each insurance policy has limits on the amount it will pay for covered claims and exclusions for certain types of damage or events. Carefully review the policy limits to ensure they are sufficient to cover potential losses. Additionally, understand any exclusions that might leave you vulnerable. For instance, standard property insurance might not cover flood damage, necessitating separate flood insurance.


  1. Customize Your Coverage

Working with an insurance broker can be invaluable in tailoring your coverage to meet your facility’s unique needs. A broker can help you:

  • Identify Gaps: Ensure there are no gaps in your coverage that could expose you to significant risks.
  • Bundle Policies: Combining multiple coverages into a single policy can often result in cost savings.
  • Negotiate Terms: A broker can negotiate more favorable terms and premiums on your behalf.


  1. Regularly Review and Update Your Policy

Your insurance needs may change over time due to facility expansions, changes in occupancy, or new regulations. Schedule regular reviews of your insurance policy with your broker to:

  • Adjust Coverage: Ensure your coverage keeps pace with changes in your business.
  • Update Property Values: Make sure your property insurance reflects the current value of your facility and contents.
  • Stay Compliant: Adhere to evolving local and state regulations regarding self-storage facility operations.


  1. Implement Risk Management Practices

Proactively managing risks can lower your insurance premiums and enhance your coverage. Consider implementing the following practices:

  • Enhanced Security: Install advanced security systems, including surveillance cameras, alarm systems, and secure access controls.
  • Regular Maintenance: Keep your facility well-maintained to prevent accidents and damage.
  • Employee Training: Train staff on safety protocols and emergency response procedures.


  1. Educate Your Tenants

Encouraging your tenants to purchase tenant protection product can provide an additional layer of protection. Many self-storage facilities offer tenant protection as a convenience. Educate your tenants on the importance of protecting their stored belongings to minimize disputes and claims.


Maximizing your insurance coverage is essential for protecting your self-storage facility from potential risks and liabilities. By assessing your risks, choosing the right coverages, understanding policy limits, customizing your coverage, regularly reviewing your policy, implementing risk management practices, and educating your tenants, you can ensure comprehensive protection for your business. Working closely with an experienced insurance broker can help you navigate the complexities of insurance and secure the best possible coverage for your facility.

At On The Move Insurance Agency, we specialize in providing tailored insurance solutions for self-storage facility owners. Contact us today to discuss your coverage needs and discover how we can help you protect your investment and achieve peace of mind.

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