Why Offer Tenant Insurance?
We all know how important it is to secure your self storage business. Selecting a PTI security system that fits your exact needs is a great first step towards protecting your investment, but now what?
When you’re setting up security measures, don’t forget to set up a tenant insurance program. Insurance on stored goods doesn’t just benefit your tenants, it protects and benefits your company.
By offering tenant insurance, your company mitigates the risk of tenants coming back on you for payment if loss occurs. Even though your lease language releases your company from liability for the tenants’ items, they still largely perceive you to be responsible for protecting their property. They are far more likely to dispute the matter in court if they do not have insurance in place. By presenting tenants with a convenient, zero-deductible coverage, you provide a customer service and promote security at your facility.
Offering tenant insurance makes your business more sustainable with its immediate and long-term financial benefits. Each month you receive payment for your administration of the tenants’ insurance. This monthly revenue can accumulate to the extent that it is a considered factor in the valuation of your property at sale.
Comparing Tenant Insurance Providers
When you’re looking for a tenant insurance provider, keep the following priorities in mind.
- Your main goal is to increase your security, so make sure your provider will supply you the full range of products that best meet the insurance regulatory requirements in all states in which you operate.
- Your provider should have a competitive profit-sharing model, and train and provide marketing tools for your facility managers so that you can meet your insurance goals.
- The provider should help to make the claims process as simple as possible for you and your tenants.
- Tenants should have ready access to licensed agents so they can get the information they need.
Research these areas well, and you will secure a capable tenant insurance partner.
Written By: Mario Macaluso, Senior Vice President of Sales, SBOA Tenant Insurance
SBOA Tenant Insurance (SBOATI) was recently named the 2017 winner for Best Tenant Insurance in the ISS Best of Business reader-choice poll for the fifth year in a row (2013-2017). SBOATI offers simple, compliant, and state-of-the-art insurance solutions for self storage customers. SBOATI is offered by Cornerstone Insurance Producers LLC and is backed by A- (Excellent) A.M. Best rated insurers. Contact Mario Macaluso to find how SBOATI can work for you: firstname.lastname@example.org or 602-761-9365.