An Overview of Considerations for Storage Insurance Coverage
StorageFirst insurance coverage is available in all 50 states and is designed for better-than-average risks with self-storage and/or mobile self-storage as the primary operation.
We are a market for liability-only coverage in all states. Liability-only may include: General liability, customers' goods legal liability, sale and disposal liability, hired and non-owned auto and umbrella (separate policy).
Property Geographic Underwriting Criteria
Our appetite for property coverage in areas with significant wind and hail exposure is low. This generally includes many states in the South and Midwestern sections of the U.S. If an exception is made, we will require that a percentage wind and hail deductible apply — and often a cosmetic hail damage endorsement, as well. We are no longer writing new property coverage with wind in the following states: Oklahoma, Kansas, Missouri, Arkansas, Nebraska, Iowa, Louisiana, South Dakota and most of Texas. We can write X-wind package business or liability-only in all states. Liability-only can include: GL, CGLL, S&DL, HNOA and umbrella (separate policy).
Property Excluding Wind and Hail -Appetite and Requirements
We have a strong appetite for X-wind package business in all states. Some states require that, as an admitted carrier, we can only offer X-wind for locations within designated areas, typically coastal areas.
StorageFirst is an aggressive market in the state of Florida for liability-only (GL, CGLL, S&DL, HNOA & Umbrella) and X-wind package opportunities.
The Following Are Some Characteristics We Like to See:
The Following Characteristics MAY Make a Risk Ineligible for this Program:
- Metal-on-metal (non-combustible, Class 3) or better construction.
- Experienced management with at least one year in business.
- Good loss history.
- Legally strong storage agreements signed by storage customers.
- Well-maintained premises and equipment.
- Owners/management knowledgeable about the state laws and procedures required to perform a legal sale of a delinquent customer's goods.
(We do make exceptions, so please call or e-mail us to discuss a specific risk)
Acceptable Non-Storage Operations:
- Fire protection class 9 or 10.
- Wood-frame construction (Class 1), including wood-framed structures with steel/metal walls and roof.
- Joisted masonry or better construction is acceptable.
Please Note: We often make exceptions if the fire protection class is good and most of the buildings are not climate controlled.
- Risks with poor loss history.
- Converted facilities.
Please Note: Older properties that have been converted to a storage operation from another use, and which have not received significant updates to the roofs, wiring, and plumbing, may not be eligible. Converted facilities are typically fine if these updates have occurred.
- Operations without an acceptable storage agreement/lease form.
Please Note: The storage agreement must contain clauses that protect the insured, such as "hold harmless," "no bailment," "rights of insured with regard to sale and disposal of customers' goods" and "customer is responsible for goods and should obtain his own insurance on the goods." There are many state and national storage associations that offer their members the use of quality storage agreements/leases.
- Fire-sprinkled properties without a fire sprinkler inspection/maintenance contract in force may not be eligible.
- Coastal wind-exposed facilities.
Please Note: Facilities within 50 miles of the Gulf or Atlantic coasts from Texas to Virginia may be ineligible for wind coverage. We often can write the property coverage excluding wind in those states that allow it. In all states, we can write the casualty coverages (general liability, customers' goods legal liability, sale and disposal liability, hired and non-owned auto, and umbrella) on a mono-line basis without property coverage. Wind coverage may be available for coastal properties that are a part of a large multi-location account that is made up predominately of non-coastal wind exposed locations.
- Manager/owner living quarters and office on the same premise as the self-storage business.
- Truck rental operations not excluded. However, we will exclude products/completed operations coverage when Penske/Budget rental operations are present.
- Retail sale of keys, boxes and packing supplies.
- Lessor's Risk Only exposures; Office, retail or office/warehouse space for rent owned by the insured and located on the same premise. If this space makes up more than 20% of the total square footage and/or one or more tenants are conducting unacceptable operations, the account may be ineligible. The risk may be eligible if these exposures can be specifically excluded.
- Non-storage operations on the premises.
The following are generally not acceptable and will either make the entire risk ineligible or can be excluded from coverage under this program:
- Public Warehousing
- Car Washes
- Moving & Storage Operations
- Propane Filling Operations
Note: Non-self-storage tenants must provide acceptable certificate of insurance to the insured, naming the insured as additional insured with waiver.