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Yes, it’s true; we love or stuff and we don’t have enough space at home, or the office, to keep it all.

There are approximately 50,000 self-storage businesses operating in the United States, renting some 2.3 billion square feet of space, employing more than 128,000 people, and generating approximately $38 billion annually. 73 percent of these facilities are owned by small, independent operators.

The self-storage industry has seen a rise in demand over the past two decades. It can be a very lucrative industry for facility owners, but it is not without its hazards that, without insurance, can lead to very expensive financial losses. If your client has made an investment in this type of business, you will want to be sure to protect their financial assets with an appropriate storage facility insurance portfolio.

Your Client’s Storage Facility Insurance Portfolio Should Include Property Coverage

Owners of a self-storage facility are not responsible for insuring the property stored by customers. That property would need to be covered by their homeowners insurance; another type of policy as recommended by their insurance agent; or through a policy that your client, the facility owner, may have as an option to offer customers for an additional fee. Your client, however, is responsible for covering their own business property. Storage facility owners are potentially liable for damages to renters’ property from fire, flood or theft. Owners are also potentially liable for claims due to the negligent sale, removal, disposal or disposition of customers’ property.

Insurance Checklist

• Building insurance: This protects the structure of the storage units and onsite office space against perils such as fire, wind, hail and vandalism. Coverage for fences and gates is typically included in the building insurance but may require special endorsement.
• Business property insurance: This protects the property the facility owner keeps in the main office, such as furniture, computer systems, filing cabinets and décor. Coverage for outdoor signs may require the purchase of an endorsement to this policy.
• Boiler & machinery insurance: Also referred to as equipment breakdown insurance, this coverage is necessary if your client’s facility provides its customers with climate-controlled units. In the event the heating or cooling system malfunctions, this insurance covers the cost of repairs or replacements so that the facility owner can get the problem fixed quickly, without a large financial hit to their business.
• Flood insurance: Flood damage can prove very expensive, and it is not covered by building or business property insurance policies. If your clients storage facility is a risk, they can supplement business insurance with a commercial flood insurance policy through the National Flood Insurance Program (NFIP).
• Novita offers $1M up to $5M excess liability coverage.

For a complete overview of Novita Insurance Solutions Commercial LRO programs, visit our website, Then contact us; we’ll help customize a Commercial LRO program for your self-storage facility clients or get you up to speed to be an expert in this real estate class and help build your book of business.

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