Have you ever wondered what kind of insurance coverage you need for your self-storage business? We’ll be going through the risk management solutions necessary to fully protect your storage facilities in this episode. Our guest is Brian Bogdanoff, the Vice President of the Insurance Office of America.
Brian has been offering risk management solutions, proactive service, and appropriate insurance products in the self-storage industry. He’s more than happy to share insights and advice on insurance policies, so make sure to tune in and learn everything about insurance in self-storage.
Insurance Products in Self-Storage
As business owners are looking to lower their storage unit insurance costs, they’ve developed various strategies. Most of them rely on the implementation of risk management practices aimed at reducing the costs of insurance packages. Self-storage insurance should protect you from fire, vandalism, theft, smoke damage, vehicle damage, water damage, and all sorts of other hazards.
From an insurance standpoint, you should note a couple of things:
- Risk management practices (or lack thereof) can influence the cost of insurance products in self-storage. You’ll get a much more favorable offer if you implement alarm systems and surveillance, hire reliable contractors, and have overall premises coverage.
- You should be wary of “hidden” coverages and implement different security policies too such as data protection against hacks and breaches, pollution liability, and workers compensation, among others.
- Renters insurance is essentially an insurance product which is issued directly to the tenant. On the other hand, with tenant protection, self-storage facility owners are assuming liability for tenants’ items in storage units. You should be buying an insurance policy that will help you repair or replace any damage to renters’ personal property. This can actually be built into rental income. Both insurance and protection plans can be offered by the insurance company.
- Difficult situations can arise at any time. You want to look for a wide enough storage insurance plan to get everything covered. Claims need to be paid as soon as possible so you can continue running your storage facility efficiently.
Passive Investing in Self-Storage
Insurance coverage is just one piece of the investment puzzle. Self-storage operators need to put time and effort into succeeding in this industry. However, if you don’t have the option to put in a lot of time, you can become a passive investor. Using other people’s knowledge and experience allows you to invest hands-free with very little upfront capital.
For more information on how you can start investing in self storage today, check out our comprehensive guide.