LOOK WHO’S TALKING
remaining types of insurance claims. Other risks that can impact self-storage businesses include hail, wind, light- ning, natural disasters, cybercrimes, trip hazards, and vermin. Even though pests, especially rodents, are problematic and preva- lent, Struewing states that “no one covers” vermin damage. Why? More often than not, the tenants are at fault for storing items that attract vermin. Fortunately for self-storage opera- tors, there are sensible solutions for mitigating this threat as well as others on the lengthy risk list.
Reducing Exposure To reduce risk at your self-storage facility, Struewing advises owner-oper- ators to take preventative measures. His suggestions for reducing exposure include performing property mainte- nance, conducting routine inspections, training employees, upgrading security systems, and establishing policies.
• PROPERTY MAINTENANCE – It’s in every owner’s best interest to maintain their property for both fi- nancial and safety reasons. Deferred maintenance can result in expensive repairs and disgruntled custom- ers. Struewing suggests walking the property to “look for situations” and make repairs accordingly. For example, potholes in the parking lot are trip hazards and should be filled immediately. Likewise, burned out lightbulbs should be replaced for safety and security reasons. When inspecting the property, pay particular attention to the unit doors to ensure they are operating properly. One way to prevent water from infiltrating tenants’ units is to replace the dry-rotted weather seal on the curtains of roll-up doors. Moreover, if your property is located in an area prone to high winds, you may want to consider installing doors with a better wind rating. Speaking of winds, Struewing says to replace lost roof shingles as you notice them to prevent
October 2022
roof leaks. If damage is noted in the winter, “don’t wait till spring” to make repairs. A sudden thaw could cause water intrusion. Last but not least, he touches on the importance of winter main- tenance. “When it snows, plow the driveways and shovel out the doors.” Again, melting snow is the culprit of many water-damage claims.
• ROUTINE INSPECTIONS – In ad- dition to property inspections, Struewing reminds owner-operators to perform routine systems checks. Sprinkler systems require annual inspections to receive certifica- tion from fire departments. Fire extinguishers need to be inspected and tagged too. To possibly pre- vent small fires from spreading, he suggests having fire extinguishers in visible locations throughout the facility for tenants to use. Security systems, roofs, and the like should be inspected at least once a year by a professional to ensure everything is up to par.
• SITE SECURITY – To keep your facil- ity from being a target of theft, Struewing highlights the need for
security features. “Fencing is the first line of defense,” he says, especially for single-story, row-style buildings. He also suggests discour- aging theft with lighting, cameras, and access control systems with gates. If your facility’s units have open ceilings, it may be wise to close them off; wire mesh can be used where sprinkler systems are a concern. Struewing adds that motion sensors can be installed in ceilings to detect those climbing crooks. Door locks are another important security component. He advises owner-operators to utilize either disc locks, cylinder locks, or Nokē smart locks. “Make them harder to break into,” says Struewing, who encourages customers to use good locks that are difficult to cut or pick. Individual door alarms are an additional option.
• PROPERTY POLICIES – Of course, it’s also important to have poli- cies and procedures in place to further protect the facility. Besides a comprehensive rental agreement stating that operators are not liable for the care, custody, and control
Premium Rates
Though some are adamant that the changes in the Earth’s climate and weather patterns are not the result of human activity, there’s no deny- ing that natural disasters have increased in both frequency and severity. And due in part to increased population densities in cities around the world, there are “bigger losses” when natural disasters strike. “Natural disasters have an impact on global insurance pricing,” says Struewing, who reminds self-storage operators that replacement costs have escalated thanks to product shortages, rising wages, supply chain disruptions, and an insufficient labor force. Consequently, in an effort to neutralize the increased replacement costs, insurance companies have been raising their policy premiums. Unfortunately, Struewing doesn’t foresee a reduction in premiums for 2023. “It’s difficult to predict,” he says, adding that hard-hitting hurri- canes, including two of the most recent ones, Hurricane Ian and Hurricane Fiona, impact everyone. “We’re all going to pay more at the end of the day. Costs will increase as these events continue and cause more damage.”
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