Tenant Protection Coverage
Tenant Protection vs. Insurance
Tenant Protection
Definition
Tenant protection is a contractual agreement between the self storage facility and the tenant that provides coverage for the tenant's stored belongings.
Not a traditional insurance policy.
Offers limited protection for items stored in the facility.
Coverage
Covers loss or damage due to fire, theft, natural disasters, and water damage.
This may include reimbursement for property damage, personal injury, or wrongful eviction.
Benefits
Affordability: Generally less expensive than traditional insurance.
Ease of Acquisition: Can be purchased directly from the storage facility.
No Deductibles: Tenant protection typically has no deductibles for the tenant to pay.
Self Storage Insurance
Definition
Self storage insurance is a traditional insurance policy purchased from an insurance provider.
Provides coverage for items stored in a self storage facility.
Requires an active policy with the insurance company.
Coverage
Covers loss or damage due to fire, theft, natural disasters, and water damage.
It may also include liability coverage, protecting the tenant from third-party claims.
Benefits
Customization: Policy can be tailored to the tenant's specific needs.
Higher Coverage Limits: Insurance policies may offer higher coverage limits than tenant protection plans.
Policy Bundling: This may be bundled with existing home or renter's insurance policies.
Key Differences
Type of Agreement: Tenant protection is a contractual agreement with the storage facility, while self storage insurance is a policy with an insurance provider.
Coverage Limits: Tenant protection plans usually have lower coverage limits than self storage insurance policies.
Deductibles: Tenant protection plans generally do not require deductibles, while insurance policies often have deductibles.
Policy Customization: Self storage insurance offers more flexibility in policy customization, whereas tenant protection plans have a fixed coverage scope.
Liability Coverage: Self storage insurance may include liability coverage, while tenant protection plans typically do not.
