Look Who’s Talking Lingo Lesson When speaking to tenants about protection plans, Betteridge stresses the


importance of avoiding insurance-related jargon. Because many self-storage owners and managers are not licensed insurance agents and are not permitted to discuss insurance policies with customers, here are a few conditions to follow:


• Don’t call it insurance. Protection plans are not insurance policies and must not be referred to as such.


• Don’t call the monthly fees for protection plans premiums. Premium is an insurance term and shouldn’t be used when discussing protection plans.


• Don’t attempt to decipher a customer’s homeowners insurance policy. Instead of trying to determine whether their policy covers items in storage, refer customers to their licensed insurance agent.


to educate them about the specifics of the plan(s). Unlike insurance policies, owners and managers are not required to obtain any kind of licenses to sell protection plans, but reputable insur- ance agencies that offer self-storage protection plans provide sales training. For instance, Deans & Homer’s webinar training covers the benefits of protec- tion plans, the differences between protection plans and insurance poli- cies, how to sell protection plans, and more. Training will enable owners and managers to better discuss with their tenants what a protection plan is and how it works—something they cannot do when suggesting tenant insurance, unless they have a license to do so, which could frustrate tenants who have questions and want answers without having to contact an insurance agent.


As for selling protection plans, Better-


idge’s advice is straightforward: “Don’t ask ‘Do you want to purchase a protec- tion plan?’ Don’t give them the option to say no.” Rather, owners and managers should simply ask what level of coverage they want for their belongings. “Assume every new tenant will buy it; don’t make it a big deal,” he says.


For tenants who have homeowners


insurance but are unsure as to whether it covers items in storage, Betteridge suggests that operators and managers


Finally, don’t forget to add an


addendum to your rental agreement that explains what the protection plan


18 August 2023 • MiniStorageMessenger.com


encourage tenants to add a protection plan to their unit, so they know they are covered. “If they are happy with their insurance policy, it can be taken off,” he says. “It’s easier to lower their bill than to increase it later.”


While some companies utilize an


auto-enroll feature for their protection plans, Betteridge says those that do not automatically enroll every new tenant should be averaging at least 65 percent enrollment. If your enrollment rate is below that average, “you could be doing better.”


To increase your numbers, Better-


idge recommends conducting annual or quarterly audits of the tenants who opted out of a protection plan. During the audit, search for expired home- owner insurance policies that need to be updated and send notices to tenants without coverage to encourage them to enroll. Be sure to list all the coverage levels you offer and their corresponding fees, as well as details about the protec- tion plan’s benefits, covered causes, and straightforward claims process. You should also invite them to call the facil- ity’s office with any questions they may have about the protection plan.


covers, the causes that aren’t covered, and any sublimits that do not offer full protection, such as damage from flooding and rodent/pest infestations. Betteridge mentions that there are some variances among protection plan vendors, but whatever is covered or excluded should be clearly stated within the addendum and reviewed with tenants when they sign the rental agreement.


Perks Of Protection Besides being able to help affected customers when an event happens, which Betteridge cites as the No. 1 reason owners offer protection plans, there are several other advantages of protection plans over tenant insurance.


“Most operators retain much higher


percentages of the fee that they are charging [for protection plans],” he says, adding that protection plans are customizable. Operators can choose their rates, level of involvement, and rules, and even brand the protection plan to coincide with the company. “They can do what works for them.”


Even the claims process is at their


discretion. Typically, the property manager fills out the incident report and then the owner submits the claim for the vendor to handle. The claims are then processed and paid within a few days—a quick process that keeps everyone happy.


“The vendor can pay all claims on


behalf of the operator, or they can share the risk by paying some claims out of pocket and having higher margins, says Betteridge. “If you want zero involvement, there are third-party claims handling companies who can be used.”


Erica Shatzer is the editor of Mini-Storage


Messenger, Self-Storage Now!, Self-Storage Canada, and Mini-Storage Messenger’s annual Self-Storage Almanac. She’s also the author of several e-books available on Amazon.


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