07 Apr 2025
The Radius+ team presented questions to Terry Campbell of Johnson Insurance to uncover what self-storage operators need to know about insurance coverage, risk management, and working with tenants. With decades of experience in the industry, Terry shares practical advice to help operators avoid costly mistakes, improve security, and ensure they're properly protected in today’s evolving market.
At a minimum, every self-storage operator should carry general liability and commercial property coverage—specifically written to cover full replacement costs. In addition, essential protections include customer goods liability, legal liability, sale and disposal liability, cyber liability, and loss of income or business interruption coverage.
We also strongly recommend pollution liability coverage. If a tenant causes environmental damage that requires state-mandated cleanup (for example, from storing hazardous materials improperly), the costs can be significant and often aren’t covered under standard policies. Every facility’s risks are unique, so working with a self-storage-focused insurance partner is key to ensuring you’re fully protected.
Self-storage facilities face unique exposures—like tenant property claims, unattended access, and climate-controlled unit failures—that traditional commercial property policies often don’t fully address. Specialized self-storage coverage accounts for these nuances, helping you avoid gaps that could lead to costly surprises.
Pricing depends on several variables: location, facility size, construction type, claim history, security features, and whether you offer climate-controlled or outdoor storage. The age of the facility and your maintenance protocols also play a big role in how underwriters assess risk.
The most common risks include slip-and-fall injuries, property damage from severe weather or fire, break-ins or theft, and tenant disputes. Inadequate tenant insurance compliance or poor documentation can also lead to liability exposure.
Start with solid documentation—lease agreements, maintenance logs, and incident reports all matter. Regular property inspections are key: make sure lighting is functional, walkways are clear, and posted policies are visible and up to date.
During periods of bad weather, it’s especially important to keep snow, ice, and debris cleared to reduce the risk of slips or injuries. Strong security measures—like cameras, gated access, and unit alarms—not only deter crime but also help limit liability exposure by documenting activity on-site. Training your staff and offering a tenant insurance program further strengthens your risk management strategy.
Enhanced security not only reduces the likelihood of claims but can also result in better rates or expanded coverage from insurers. Features like 24/7 surveillance, electronic locks, keypad access, and unit alarms demonstrate proactive risk management.
Absolutely. In coastal or flood-prone areas, flood and wind coverage are essential—and not always included in standard policies. In other regions, hail, wildfire, tornados, or even snow load risk might need special consideration.
Yes. Tenant insurance is one of the most effective ways to transfer risk and reduce liability for the facility. It also reinforces transparency with tenants by clearly outlining responsibility in the event of loss or damage.
Requiring tenant insurance adds another layer of protection that insurance carriers value— it can help streamline claims processing and increase the likelihood of smoother payouts when incidents occur. It’s a win-win for both the facility and the tenants.
Most tenant insurance policies cover theft, fire, and certain types of water damage— subject to deductibles and policy limits. The key is having proper documentation, like police reports and proof of loss. Encouraging tenants to photograph their stored items is always a good idea.
General liability coverage is essential, but you should also consider legal defense cost coverage and umbrella liability for added protection. It’s also critical to review lease language with legal and insurance experts to avoid contract loopholes that can lead to uncovered claims.
Some of the biggest mistakes include underinsuring the property, assuming tenant property is automatically covered, or working with agencies that don’t understand the storage industry. Partnering with an agency, like Johnson Insurance, that specializes in self-storage—and reviewing your coverage annually—is the best way to stay protected.
Terry Campbell brings over 30 years of hands-on experience in the self-storage industry, including construction, lending, and facility management. He founded the self-storage lending division at Live Oak Bank and has owned multiple self-storage facilities. Now at Johnson Insurance, he focuses on providing tailored insurance solutions for self-storage owners and operators.
Johnson Insurance Services, based in Mocksville, NC, has been a trusted independent agency for over 110 years. Specializing in both commercial and personal insurance, the agency provides tailored solutions with a focus on white-glove service. Johnson Insurance offers specialized coverage for self-storage operators, including Property & Casualty, Cyber Liability, Workers’ Compensation, Customer Goods Liability and more. Their extensive network of carriers ensures competitive rates and comprehensive coverage for every client.
