Submitted to Investment Real Estate by Maureen A. Lee at Xercor Insurance Services LLC
When someone walks into one of your stores in need of a storage unit, your property manager greets them with a friendly face and assures them that their belongings are safe with your company. But if they opt to insure through their Homeowners’ or Renters’ insurance, they may walk away from a denied claim upset about their storage experience. To ensure your tenants are happy and their belongings are covered, it’s up to you to encourage each customer to insure with a third-party tenant insurance, such as Xercor. By doing so, you’ll be better equipped to ensure they have an empowering experience in the face of a loss and see them again for their future storage needs.
Third-Party Tenant Insurance vs. Homeowners’ and Renters’ Insurance:
Homeowners’ and Renters’ insurance both have a limit to what they will cover outside of an individual’s premises. Renters’ insurance, for example, typically only covers 10% off premises.
Not only will tenants most likely not be able to cover the cost of the damage with their Homeowners’ or Renters’ insurance alone, but the minute they file a claim, they put themselves at risk for an increased premium at renewal. With third-party tenant insurance, premiums are fixed no matter how many incidents they’ve had to go through.
Vermin, flood and mold are some of the most common damage sources in self storage properties nationwide, yet Homeowners’ or Renters’ insurance don’t typically cover these losses. An individual has to contact the National Flood Insurance Program directly if they want flood coverage, for example. However, with Xercor, your tenants will be prepared for even the most troublesome loss situations.
Tenant insurance is a monthly charge added on to each customer’s monthly self storage rent without worrying about separate payment plans. These monthly payment plans, as long as they are appropriate and not excessive, ensure that tenants don’t continue paying for insurance after they have already moved their belongings out of their self storage unit. With Homeowners’ or Renters’ insurance, most plans are annual, making it difficult for tenants to cancel any changes they may have made for their storage unit until the full year has passed.
When a tenant experiences a loss, they are often devastated; or at the very least annoyed by the situation. It sullies their experience with your self storage company and hinders positive customer relationships. However, the minute they settle the claim with their adjuster, their attitude shifts. They will not remember the loss, but rather the attentive, efficient and convenient way in which their claim was settled. This will improve their outlook on their negative experience, so when they are in the market for a storage unit in the future, they will remember how well your company kept their belongings protected.