Mini Storage Insurance

12 Replies

All of you who own mini storage properties, who do you use for your insurance? 

I’m under contract on my first storage property, so I’m trying to get everything lined up. I just had my first quote at about quadruple what it should be. Argh. 

Originally posted by @Wendy C. :

All of you who own mini storage properties, who do you use for your insurance? 

I’m under contract on my first storage property, so I’m trying to get everything lined up. I just had my first quote at about quadruple what it should be. Argh. 

Congrats on your first storage property! That's really frustrating about the insurance quote.

I have a great insurance guy in NJ, and he works with properties nationwide, please PM me for his info. 

732-333-1477

Don’t get discouraged, my first quote was $5k+, I ended up with Liberty Mutual for about 1/4 that and have since moved to a smaller in-state company that is under $1k.
Make sure that you are getting insurance that is self storage specific that covers you for sale and disposal liability.

Thanks, @Yonah Weiss , I’ll message you!

@Mark Byrge , Liberty Mutual is one I have a quote for at the moment, and although it was less than the first one, it’s still more than I thought it would be by a lot! How long did you stay with Liberty and how did you go about finding a better quote? 


@Michael Wagner  , the most recent quote I received was about $3500. The place is only currently valued at about $600k. One thing I’m wondering about is whether it’s up in the range of yours because it has a manager’s apartment on the front? Do yours have any kind of residence on the property?

@Wendy C. , yes mine do have small apartments on site....remember that the policy is likely based on the replacement cost of the buildings (unless you elect an ACV - actual cash value policy).  As such, the quote is not dictated by fair market value.  How many square feet is your facility?  An insurance company will probably put a rebuild cost of $35 per square foot...so if your facility is in the 15000-20000 square foot range, I think your quote is not out of whack.  There are also market specific insurance costs (hurricanes in florida, tornados in oklahoma, etc) so the best thing to do is grab three local quotes and you will know if any one of them is out of line.  

I know Pekin has been giving pretty competitive rates recently and Westfield also has been competitive in the self storage sector

@Michael Wagner , total sq ft including apartment is 11,852.  One of the quotes had a replacement cost of $675k. The property is here in my area (south of Seattle), and we have no big market specific costs (it’s not even in a flood zone!). 

It is an older building (1993), roof was replaced 4 years ago. 

Do you mean a local broker or a local insurance company?

look at Storage First as a competing bid.  That is a high rebuild price on that square footage....I would think a $450000-$500000 policy should suffice. I suspect you will end up in the $2500-2800 range if you use a local broker to shop the policy to 3-5 national companies.

So I've gotten a few more quotes back and I'm liking them more! Storage First has been the best one so far, thanks, Michael, for the suggestion!

Now, my dilemma is how do I make sure all policies are created equal??  There's a lot of insurance gobbly gook language in policies. 

How do I know whether or not it is good comprehensive coverage and they are equal to each other?   There's obviously always the potential for hidden loopholes or areas of coverage that could be left out that I don't catch. 

@Michael Wagner ? @Mark Byrge ? @Yonah Weiss ?

@Wendy C. If you have a broker that you can trust, the should be able to give you full disclosure. Discuss your concerns. I don't know if you reached out to Joseph, but he does just that!

732-333-1477

Join the Largest Real Estate Investing Community

Basic membership is free, forever.