You’re investing in self storage insurance for security and peace of mind — you expect your policy to help you recover from a claim by providing adequate funds to replace what was damaged or destroyed.
But what happens when it doesn’t?
The most glaring error we’ve found in our experience with self-storage policies is incorrect replacement cost evaluations. In fact, many carriers will allow properties to be insured without an accurate one on record.
For example, let’s look at a large, concrete, air-conditioned building. We’ve seen companies draft policies to insure fairly new buildings like this with a replacement value of under $35 per square foot. These buildings, with expensive additions like concrete pressed roofs, are being undervalued by over a third. In the insurance world, we like to prepare for the worst. If this building was completely destroyed, down to the foundation, it would cost well over $45 per square foot to replace – a huge discrepancy to pay out of pocket.
Each carrier has different guidelines, but most have set caps on replacement cost depending on the area – a wide variety of factors can influence this figure, including the building type, age, and material used. Under an admitted carrier, the replacement value is held under rigid guidelines. Surplus lines insurance (non-admitted carriers) tend to be less restrictive, catering to unique entities that are susceptible to risks most policies don’t cover. They are also more lenient with claim history that might deem the client uninsurable by other companies.
Most people aren’t aware of the differences between admitted and non-admitted insurance carriers — if you’d like to read a bit more how they vary, you can check out our article comparing the two. While there are pros and cons to both options, it’s important for you as a consumer to be informed and explore your options prior to purchasing a policy.
You’ll need a comprehensive layered plan that can protect you and your asset with a myriad of different coverages. Owning a storage unit puts you in a unique niche and comes with a vast array of risks—it’s important to choose a carrier that understands them. Forerunner founder Joshua Jones is passionate about storage, working to anticipate your needs with over eight years of experience in the industry. Let’s face it — insuring these types of facilities for property and wind is already quite steep. It’s important to choose carefully and be certain that you have the proper coverage to protect your investment.
The ever-evolving insurance industry is much easier to navigate with a trusted and knowledgeable agent by your side. The annual influx of new carriers creates opportunities for outstanding benefits as well as potential discounts. Partnering with an aggressive agency that stays up to date on new prospects by doing extensive market research will ensure you’re receiving the best possible value for your hard-earned cash. Forerunner Insurance Group is dedicated to make sure you’re insured properly, with the most comprehensive coverage at the best price.
For more information on policy structure, plans, and information on non-admitted vs. admitted carriers, contact us. We look forward to exceeding your expectations.