By Julie Casella, Certified Self Storage Manager
Almost every day, as property managers, we get the same question from prospective storage tenants, “Why do I need storage insurance?” The first reason is because if it’s important enough to keep, it should be important enough to protect. The second reason is that although the storage company is allowing you to store your items in their buildings and storage units, they do not have to take any liability for those items. The self storage company only has insurance to protect their buildings and property, nothing inside a storage unit or parked in an outdoor parking space is covered. Your items are your responsibility to protect, and we require that you carry self storage insurance coverage for your valuables as part of our rental agreement.
There are two different options when it comes to self storage property coverage. You can either cover your items with your personal homeowner’s or renter’s insurance policy, or elect to be enrolled in a third-party policy offered through the storage company. We have partnered with Xercor Insurance Services LLC to make that decision as easy as possible for our customers. They have created insurance policies built specifically for self storage tenants. These policies are very affordable and offer several levels of coverage.
If you are thinking, “Well I have my own homeowner’s policy, why do I need Xercor?” You should look into the pros of this insurance before making a decision. Most homeowners’ policies either cover very little or nothing at all while storing your belongings in a storage facility separate from your home. Some insurance companies do cover storage away from your home, but may only provide coverage for up to 10% of the policy. Xercor offers four different coverage levels from $2,000 to $5,000, so you can select the best coverage for your needs. This also keeps you from paying for coverage that you don’t need. Simply choose the level of coverage that is closest to the value of what you have in your storage unit. The convenience of Xercor’s coverage options are great, along with the low premium for the coverage. The premium is directly added into your monthly rental payment. So there is no need to remember two different bills or when to pay them.
When an accident occurs or disaster strikes, and the initial concern of your items’ condition has gone away, there is usually the thought of UGH, I have to deal with the insurance company now! Making a claim with your homeowners’ insurance results in usually paying a high deductible, and your rates going up simply because you made a claim. However, with Xercor, the deductible is only $100 for a claim, and your premiums will not go up for making a claim. Ever. The hassle of getting in touch with an agent and getting the recovery process rolling can be a long process when using your personal policy. But Xercor works both with the tenant and the property manager to ensure the claim gets settled as soon as possible.