Self Storage Tenant Protection Plans: Everything Owners and Operators Need to Know

As a self-storage owner or operator, finding ways to enhance your business, increase revenue, and offer better service to your tenants is always top of mind. One way to achieve this is by offering tenant protection plans. These plans offer financial protection for tenants and peace of mind for facility owners. However, you may have several questions before deciding if a tenant protection plan is right for your facility.

Our goal is to answer the most frequently asked questions about self-storage tenant protection plans, helping you understand the benefits, processes, and details necessary to make an informed decision.

What is a Tenant Protection Plan, and How Does It Differ From Tenant Insurance?

Tenant Protection Plans provide financial coverage to tenants in case their belongings are damaged or stolen while in storage. Unlike tenant insurance, which is typically governed by state insurance regulations and sold by licensed insurance agents, tenant protection is a simpler arrangement between the facility and the tenant. This distinction gives owners more flexibility in setting the terms and pricing of the protection plans.

In tenant insurance, the facility’s role is limited to providing the tenant with the insurance company’s contact information. All claims are handled directly between the tenant and the insurance company. With tenant protection plans, however, facility owners can play a more active role by initiating and managing claims through a protection plan provider, offering faster resolutions and more direct communication with tenants.

Theft due to forcible entry

Fire, smoke, lightning, explosion, windstorm, tornado.

Commercial property and household goods.

Furs, antiques, works of art, consumer electronics.

Cars, boats, jet skis, motorcycles.

Document re-creation costs.

Moth, insect, rodent, or vermin damage.

Replacement cost coverage for damaged or stolen property. (clothing & household linens subject to depreciation)

How Does Offering a Tenant Protection Plan Benefit My Business?

Offering tenant protection plans brings several benefits to your facility:

Increased Revenue

You can charge tenants a monthly fee for the protection plan, and as the facility owner, you keep a percentage of that fee. This additional revenue stream can significantly boost your bottom line.

Better Tenant Satisfaction:

Tenants appreciate knowing their belongings are protected while in storage. This peace of mind can improve customer retention and lead to more positive reviews for your facility.

Faster Claims Resolution

With tenant protection plans, you control the claims process. Your facility management team will be involved in filing claims, offering a more seamless experience for tenants.

Competitive Advantage:

Providing an easy-to-understand, flexible protection plan can set your facility apart from competitors who only offer traditional tenant insurance.

How Much Can I Charge Tenants for Protection Plans, and How Much Revenue Can I Generate?

The pricing of tenant protection plans is generally flexible and depends on the level of coverage you offer. For example, if you charge tenants $12 per month for $2,500 in coverage, and your protection provider takes 30%, your facility would keep 70% of that monthly fee. This structure allows you to offer affordable protection while keeping a significant portion of the revenue.

You can also offer tiered plans where tenants can choose higher coverage limits, allowing for greater flexibility and more revenue.

Is Any Special Licensing Required to Offer Tenant Protection Plans?

Unlike tenant insurance, which requires staff to have a license to sell insurance products, tenant protection plans do not require special licensing. This makes it easier for your team to offer the plans without the regulatory burdens associated with insurance sales. You’ll simply train your staff on how the protection plans work and how to present them to tenants.

What Software or Tools Are Available to Manage the Plans?

The right tools and software integrations make it easy to manage tenant protection plans. We offer a user-friendly portal that works with your facility’s existing management software. This allows you to:

Track claims in real-time

Manage tenant protection plans

Monitor any facility-related issues (such as damages that might result in a claim)

Popular self-storage management systems, such as Sentinel Systems, Storeganise, Storage Commander, and Self Storage Manager, are often compatible with tenant protection provider software. This makes managing protection plans a seamless part of your facility’s day-to-day operations.

Can Tenant Protection Plans Be Customized for Different Facilities or Tenant Needs?

Yes, tenant protection plans can often be tailored to suit the specific needs of your facility or your tenants. This could include offering varying levels of coverage depending on what tenants need or pricing based on the size of the storage unit. You can also implement different tiers of protection, such as offering SecureOutdoor protection specifically for tenants storing vehicles or outdoor equipment.

What Types of Damages or Losses Are Covered Under the Plan?

Theft or Burglary:

If a tenant’s unit is broken into and items are stolen, they can file a claim for compensation.

Damage from Weather:

Depending on the plan, damage from weather events like floods or fires might be covered.

Vehicle Protection (For Outdoor Storage):

Plans like SecureOutdoor cover vehicles stored in outdoor spaces for damage, such as dings, dents, and theft of OEM parts from locked vehicles.

What Happens if a Tenant Files a Claim?

Incident Occurs:

If a tenant’s belongings are damaged or stolen, they report the incident to the facility manager.

Manager Files a Claim

The facility manager logs the claim through a management portal provided by the tenant protection provider, like SecureLease.

Tenant is Notified:

The manager gives the tenant documentation for the claim and instructions on how to proceed.

SecureLease Takes Over:

The tenant contacts our claims department to complete the claim process. The SecureLease team handles the rest.

Fast Resolution:

If a tenant’s belongings are damaged or stolen, they report the incident to the facility manager.

This process puts you in control, letting you assist tenants directly while allowing our professional team to handle the technical details and processing.

Are There Any Long-Term Contracts or Commitments Involved?

One of the biggest advantages of tenant protection plans with SecureLease is the lack of long-term contracts. Unlike some competitors that lock you into multi-year commitments, SecureLease operates with flexibility in mind. You can cancel the protection plan with a 30-day written notice, giving you peace of mind that you won’t be tied down to a lengthy contract if your needs change.

How is the Tenant Protection Plan Marketed to Tenants?

Effectively marketing tenant protection plans is crucial for encouraging tenants to enroll. We offer training for your staff on how to explain and present the benefits of protection plans to tenants. By highlighting the financial protection and peace of mind these plans offer, tenants are more likely to sign up. Make sure your team is confident in explaining:
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The types of incidents covered

The ease of filing a claim

The affordable monthly cost

Simple promotional materials at your front desk or online portal can also help market the plans.

What is the Maximum Coverage Available, and Can It Be Increased?

SecureLease offers coverage up to $50,000, but you have the option to increase the coverage with additional documentation and approvals. This makes the protection plan scalable, depending on the specific needs of your tenants. For example, if a tenant is storing high-value items, they might opt for a higher level of coverage.

Are Outdoor Storage and Parking Spaces Covered Under the Protection Plan?

Outdoor storage spaces present unique risks, especially for vehicles. SecureOutdoor, a sub-product of SecureLease, specifically addresses this need. It covers damage to vehicles stored in outdoor spaces, including:

Dings, dents, scrapes, and scratches

Burglary or theft of locked vehicles and OEM parts

This makes SecureOutdoor an excellent option if your facility offers parking spaces or outdoor storage units, providing coverage where typical tenant protection plans might not apply.

What Happens if I Decide to Stop Offering Tenant Protection Plans?

If you choose to stop offering tenant protection plans, it’s a simple process. SecureLease allows you to cancel with 30 days' written notice, making it easy to change your service offerings as your business evolves.

What Customer Support is Available for Me and My Tenants?

We offer customer support for both facility owners and tenants. With an in-house claims department and easy-to-use management portals, you can rely on us for:

Claims processing

Questions about coverage

General support for managing the plans

This reduces the burden on your team, letting you focus on other operational tasks while we handle the heavy lifting.

Tenant protection plans are a valuable tool for self-storage owners and operators, providing financial benefits and operational flexibility. With simple setup, no long-term contracts, and the option to customize coverage, offering tenant protection could be the key to growing your business and keeping your tenants happy.