Enhance Your Self-Storage business with SPI

Collateral protection insurance is a type of coverage designed to safeguard renters' interests in case their insurance policy lapses or becomes inadequate to protect their stored assets. It serves as a safety net for tenants, providing coverage for any damage or loss to the property being stored.

• Self Storage Renters: Individuals who have leased a storage facility.
• Self Storage Real Estate Owners: Owners looking to generate tax-free extra income through a captive insurance program.

The cost of collateral protection insurance varies based on the type of loan and the value of the stored items. Typically, insurance premiums are added to the borrower's monthly rent payments. Enrollment and claims processing fees may also apply.

• Premiums: Vary based on storage value.
• Enrollment Fees: One-time fee charged at enrollment.
• Claims Processing Fees: Charged for processing claims.

Enrollment in the collateral protection insurance program is usually facilitated through our company. Owners may need to provide proof of insurance, complete an enrollment form, and pay the enrollment fee.

In the event of damage or loss to their collateral, renters should submit a claim to the insurance provider. The claim will be assessed and processed by the provider, and additional documentation or information may be required to support the claim.

• Managing the Insurance: Renters should keep their insurance policy up to date, inform their lender of any changes, and review their coverage regularly to meet property owner requirements.
• Making a Claim: If the collateral is damaged or lost, renters should contact their landlord and insurance provider immediately, providing as much information as possible to support their claim.

• Units: 100
• Monthly Receipts @ $20.00 with 60% Penetration: $900
• Yearly Owner: $10,800
• Claims (25%): -$2,700
• Yearly Income With Reinsurance: $8,100

Regular Insurance:

• Current Insurance Cost: $10
• Penetration of Occupied Units (100×85% Occupancyx60% Penetration): 51
• Insurance Income 40%: $204
• Yearly Income with Regular Insurance: $2,448

The owner of the facility will lose a profit of $ (1,965.60) after claims.