Self Storage Insurance: Cutting Coverage May Increase Risk

Written by: Mike Schofield Posted: 7/27/2018
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When it comes to insuring your self storage operation, there is more to consider than just the premium. In the interest of protecting your valuable business investment, it is worth remembering the old saying, "you get what you pay for."

Actions such as lowering your building value, omitting coverages and choosing lower insurance limits may help to lower your insurance premium. However, these steps also may increase your exposure and risk. It is important to stop and think about the potential consequences in the event of a severe or catastrophic loss or lawsuit.

Instead of increasing your risk, look for carriers that offer value-added coverages and service such as a blanket building and contents limit that includes coverage for fences, building glass, signs, walkways and roadways. Be sure to ask about sublimits and how they may affect your ability to recover after a loss. Some carriers include coverages such as building ordinance, identity recovery and sewer backup with no separate sublimits.

Most critically, be sure to sit down with your insurance agent to review your concerns. Your agent will be happy to identify potential exposures and discuss coverage options in detail.

About the Author

Mike Schofield is the President and CEO of Phoenix-based MiniCo Insurance Agency, a provider of specialty insurance products and publications for the self storage industry since 1974. MiniCo has partnered with London-based Lloyd’s to offer specialty property and deductible buy-back solutions for insuring the most challenging self-storage properties. MiniCo Insurance Agency, LLC, is a member of the Aran Insurance Services Group. For more information, visit

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