Self Storage- Insurance

[Henry Clark]

Had a conversation with our insurance provider.

1.  On another post someone said they use locks with a master key for all customers.  This makes you a warehouse and not Selfstorage.  You then take on new liability on the contents and any physical issues inside the unit.

2.   Rates have gone up, why?  He said it is due to the increase in material costs. A lot of new construction drove material prices up. Plus Covid shortages.   Thus rates went up to cover increased costs.  He expects premiums to normalize in the future but does not see it occurring soon.  

3.  Weather.   Unless you have a really large facility he doesn’t see Florida and parts of Texas being able to support the insurance premiums on a small facility due to hurricane issues recently driving up premiums. 

[Henry Clark]

No citation.  That is what our insurance carriers have stated in the type of coverage we carry.