The Difference Between Tenant Insurance and Protection Plans

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The Difference Between Tenant Insurance and Protection Plans

There is much more to self storage than renting a unit and paying for it monthly. When you decide to do business with a self storage company, you are entering into a legal contract that governs how your items will be stored and also outlines who will be held liable in the event that your items get damaged. In just about every single case, the agreement dictates that the self storage facility will not be responsible if any damage or loss to items that are being stored.

Self storage insurance plans are needed in order to offset the cost in case of damage or theft. However, insurance isn’t the only form of plan available to self storage customers. Some self storage companies offer a protection plan that will pay for damage or loss up to a specified amount. Even though self storage insurance and a protection plan may seem similar in terms of compensating customers for loss, there are several key differences between the two.

A self storage protection plan should in no way be confused with insurance. It is simply an agreement between the customer and the self storage facility to provide monetary compensation in the event of a damage or loss. For example, the protection plan offered by A-1 Storage comes with no deductible at a cost of $10 per month and offers $2, 500 in protection.

Many self storage insurance plans will only make a payment after a claim has been filed and there has been a proper investigation into whichever incident that occurred that resulted in a damage or loss. A self storage protection plan is a little less stringent when it comes to the investigation process since the facility would have already been aware of any incident that may have occurred. Dealing with a protection plan from the self storage company means cutting out the middle man when it comes to claims. This can come in handy in terms of speeding up the claim process.

As a customer, before you choose a protection plan directly from the self storage company or seek a third-party insurance policy, keep in mind that there are certain risks involved. For instance, protection plans are not regulated. Insurance companies have strict regulations that they must adhere to by law. These are largely absent from protection plans since the facility is providing it as an added benefit or service. Also, insurance companies have funds in place in the event of customers’ claims. A self storage company may not have funds set aside for this and may in turn reject a claim if it finds that it is unable to pay.

Both insurance policies and protection plans have their advantages and disadvantages. The best way to determine which one is right for you is to assess the value of the items you are placing into storage. For items that have a high value, seek insurance from a reputable company that has years of experience in dealing with claims. If you are simply storing some holiday items or anything that you can easily part with, a simple protection plan may be your best bet.

Jodi Reid

About Jodi Ann Reid

Jodi is a writer for the Self Storage Blog, and specializes in content writing and SEO rich articles. She enjoys working out, eating healthy and having fun.