Frequently Asked Questions
Does tenant insurance cover my facility if something happens to the building?
No. Tenant insurance (or a tenant protection plan) covers a customer's stored belongings — not your building, equipment, or liability as the facility owner. You still need your own commercial property and liability coverage no matter how many tenants opt in.
What does General Liability (GL) insurance cover for a self-storage facility?
GL covers third-party bodily injury and property damage claims — a visitor slipping on the property, a delivery vehicle damaging a gate. It's the first line of defense against everyday liability exposure.
What's the difference between Replacement Cost and Actual Cash Value (ACV)?
Replacement Cost pays what it actually costs to rebuild today. ACV subtracts depreciation first, which on an older building can leave a real gap between your payout and your actual rebuild cost.
Am I covered if a lien sale goes wrong?
Only if your policy specifically addresses sales and disposal liability. A wrongful sale claim — wrong unit, improper notice, disputed ownership — is a distinct exposure that standard policies often don't fully anticipate for this industry.
What is Business Income Interruption (BII) insurance?
It replaces the income you lose while your facility is being repaired after a covered loss. Without it, your fixed costs keep coming due while rental income stops.
Why did my premium go up even though I didn't file a claim?
Market-wide rate trends, rebuild-cost inflation, and updated building valuations can all move a premium independent of your own claims history — worth a direct conversation with your broker about what's driving it.
What's a retro-rated or captive insurance program?
Both are ways to structure coverage so your own loss performance has more direct influence on your final cost, instead of a flat market rate. They tend to fit larger, well-run portfolios with a strong loss history best.
What's Equipment Breakdown coverage?
Equipment Breakdown covers mechanical or electrical failure of equipment like gates, climate control, and elevators — a type of loss standard property insurance often doesn't pick up.
How do I know if my deductible is set right?
It's a trade-off between premium and out-of-pocket exposure, and depends on your risk tolerance and reserves — worth revisiting every renewal rather than leaving it on autopilot.