Chris Betteridge – National Sales Director, Deans & Homer BY ERICA SHATZER
W
ithin the retail industry, protection plans are not new. It’s likely that a
sales associate or online shopping cart has prompted you to purchase a protec- tion plan for anything from a television to a carpet scrubber. These protection plans, which vary in price and coverage length, depending on the item and the insurer, go above and beyond limited manufacturers’ warranties by covering mechanical and electrical failures and other common malfunctions that may occur from normal wear and tear. Protec- tion plans offer budget-conscientious consumers peace of mind that their pricey purchases will be replaced or repaired—without having to pay a deductible—if issues arise during the term of the plan.
protection from commer- cial lawsuits, can outweigh the responsibilities when a program is properly implemented.
A-Plus Approaches Coverages and conditions of protection plans vary, since operators have the flexibility to set the pricing, options, and limits, but there are several strategies that can be employed to ensure the success of any protection plan.
Per Betteridge, a prosperous protec-
tion plan program “starts with manager buy in.” In other words, if a property manager doesn’t care nor understand
Data from the National Association of Insurance Commissioners reveals that 85 percent of homeowners have home insurance policies ...
Similarly, protection plans within the
self-storage industry cover a tenant’s stored belongings from damages sustained by natural disasters or the owner’s negligence. According to Chris Betteridge, national sales director for Deans & Homer, they serve as a “contrac- tual agreement between the store and the tenant” who pays the monthly fee for the protection plan. “The operator takes on the risk, but may purchase insurance coverage to transfer some or all of the risk to an insurer.”
Although operators and/or manag-
ers may handle a portion of the damage claim process, the perks of protection plans, such as additional revenue, the ability to help tenants with losses, and
the value of the protection plan, he/she “won’t be good at selling” it to tenants.
Take this hypothetical scenario into
consideration: A nearby wildfire that firefighters are struggling to contain reaches a 300-unit self-storage facility. It destroys nearly half of the build- ing before being extinguished. Items stored in the uncharred units have been damaged by smoke and/or water. All the tenants are understandably distraught about their losses, airing their griev- ances to the property manager. Without a protection plan in place, the manager will be having difficult conversations with numerous tenants, rationalizing that the facility is not liable and won’t compensate them for their losses.
“It’s hard to tell tenants they can’t
do anything for their loss,” says Better- idge, who reminds owners that negative reviews that result from disasters can be detrimental to a business’ reputation. “Managers who have dealt with tenant losses will better understand the value of their protection plan as it relates to repu- tation management.”
Data from the National Association
of Insurance Commissioners reveals that 85 percent of homeowners have home insurance policies, so managers could direct tenants to file claims through their personal policies, but Betteridge mentions that many of those policies do not cover items stored outside of the home. Moreover, the homeowner policies that do cover items in storage may have hefty deductibles.
“A protection plan has no deductible,”
he says, adding that tenant insurance also requires the insured to pay a deduct- ible in most instances.
Once managers are on board with
providing protection plans to tenants, Betteridge says the next logical step is
MiniStorageMessenger.com • August 2023 17
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