coverage by self storage insurance




Legal Ramifications Self-Storage Owners Might Face (& How Your Insurance Policy Can Protect You)

self storage ownersYou do not have a self-storage facility if you are letting a friend keep his items in your garage for a few weeks. You have a self-storage facility, by law, if there are several storage units on the premises for which you charge a monthly amount for rent.

There are certain rights given to self-storage owners, which include the right to sell a person’s property if they fail to pay the rent. You must follow all legal steps before selling the property to avoid the legal ramifications that come with eviction. Having self-storage insurance, such as that from StorInsure, can help you deal with the legal backlash that may come from disgruntled tenants.

What happens when a tenant stops paying rent?
All self-storage rental agreements have stipulations regarding monthly rent payments. A tenant is responsible for payment until the contract ends. A tenant who stops paying rent on a storage facility violates the agreement and, thus, places himself in a position to lose his possessions. A self-storage owner cannot outright sell the items of the person in default. He must first provide proper notice of his intent to sell the goods.

What documents are necessary?
Most states require self-storage owners to provide the non-paying tenant with a Preliminary Lien Notice after the rent becomes 14 days past due. It is then that the tenant has the opportunity to respond by paying the full amount of setting up a payment schedule, if allowed by the owner, to satisfy the outstanding balance.

Tenants who do not respond must receive a Notice of Lien Sale, which informs the renter that his items will be sold unless the balance is paid in full. Tenants who do not respond to this notice forfeit their right to their possessions and, thus, run the risk of having their items sold at auction to cover the unpaid balance.

How does self-storage insurance help?
Insurance for self-storage facilities provides owners with financial support to fight legal battles in court when tenants have not responded to notices and, therefore, have their items sold. You can count on your insurance for self-storage facilities to pay for lawyer fees and in some cases the cost of damages if you lose in court.

Do not operate your self-storage facility without the right indemnity policy. Call StorInsure today to get covered!