Storage Facility Insurance for Natural Disasters: Everything You Need to Know

Natural disasters can bring a lot of disasters, causing significant damage to properties and disrupting businesses. Comprehensive insurance coverage is not just a precaution for storage facility owners but also necessary. 

It would be foolish to think that natural disasters such as hurricanes, tornadoes, earthquakes, fires, floods, and other catastrophic events can’t happen to you. If you own a storage facility and don’t have the proper insurance, you could be putting your business at risk.

In this blog, we will discuss how storage facility insurance for natural disasters can protect your business against the devastating effects of these events, compare storage facility insurance vs. self-storage insurance, and provide tips on choosing the right coverage.

How Storage Facility Insurance Protects Your Facility from Natural Disasters

Storage facility insurance provides financial coverage for damages caused by natural disasters like floods, earthquakes, and hurricanes. Below are some of the ways it protects your facility from natural disasters. 

Protection Against Floods and Hurricanes

If your storage facility is in a flood- and hurricane-prone area, you need the right insurance coverage to protect it. Most commercial property insurance policies do not cover damage caused by floods, so you must purchase a separate flood insurance policy to protect your storage facility.

Protection Against Tornadoes and Severe Storms

Tornadoes and severe storms are common in many parts of the U.S. and Canada, and they can cause significant damage to storage facilities. High winds, hail, and heavy rain can all wreak havoc on buildings, and tornadoes can destroy them.

If a tornado or severe storm damages your storage facility, insurance can help cover the cost of repairs so you can get back up and running quickly. Without storage facility insurance, you may be left paying for the damage out of pocket.

Protection Against Wildfires

Wildfires are another common natural disaster in many areas of the United States. They can start suddenly and spread quickly, putting your storage facility at risk. If your business is affected by a wildfire, storage facility insurance can provide coverage for the damage. This can help you pay for repairs, as well as any lost income while your business is closed.

Protection Against Earthquakes

Most storage facilities are insured with a standard commercial property insurance policy, which typically covers damage caused by fire, lightning, windstorms, hail and explosions. However, earthquakes are not typically covered under a standard policy. 

If your storage facility is located in an area that is prone to earthquakes, it is important to ensure that you have the right type of storage facility insurance coverage in place. An earthquake can cause serious damage to your property, and without the right insurance, you could be left to cover the cost of repairs and replacements on your own.

Protection Against Extreme Cold and Snow

While many of the natural disasters on the list can damage your storage facility, extreme cold and snow can also damage the items and belongings of your customers stored inside the storage units. 

For example, if there is a power outage at your facility during the winter, the temperature inside your storage units could drop to dangerous levels. This could damage items such as electronics, wood furniture, and antiques. With storage facility insurance, you can get coverage for damage caused by extreme cold, hot, and snowy climate conditions. 

Choosing the Right Storage Facility Insurance

Taking the right insurance for your storage facility can feel overwhelming, but it’s crucial for your storage protection. Here are some key factors to consider when choosing insurance coverage:

Coverage Limits

Make sure the insurance policy covers the total replacement cost of your facility and all the items stored inside. This means if a disaster hits, the insurance will pay enough to rebuild and replace everything.

Deductibles and Exclusions

Look closely at what the policy covers and what it doesn’t. The deductible is the amount you’ll pay out of pocket before the insurance kicks in. Exclusions are specific situations or items the policy won’t cover. Knowing these details can help you avoid surprises later.

Natural Disaster Provisions

Check that your policy includes coverage for natural disasters like floods, earthquakes, and hurricanes. Not all policies automatically cover these events, so you might need to add extra coverage. Make sure you understand what’s included to ensure you’re fully protected.

It is also important to understand how storage facility insurance differs from self-storage insurance before purchasing coverage. While self-storage insurance typically covers individual units and their contents, storage facility insurance offers broader protection for the entire business infrastructure.

Conclusion 

It’s important to ensure your storage facility is prepared for natural disasters. While you can’t control when they happen, you can control how you respond to them. Protect your business and customers by having a plan to recover from a natural disaster.

Don’t wait until disaster strikes to protect your business. Contact us now and secure your facility with the best protection available!

FAQs

What is storage facility insurance?

Storage facility insurance is a specialized policy designed to protect storage businesses from financial losses due to various risks, including natural disasters. It covers damage to the facility itself and the stored items, ensuring you aren’t left with significant out-of-pocket expenses in the event of a disaster.

How does storage facility insurance differ from self-storage insurance?

Storage facility insurance provides comprehensive protection for the entire business, including the building and its contents. Self-storage insurance, on the other hand, is typically for individual renters and covers their personal belongings stored in a rented unit. Storage facility insurance also often includes business interruption coverage, which self-storage insurance does not.

What types of natural disasters are covered under storage facility insurance?

Most storage facility insurance policies cover a range of natural disasters, including floods, earthquakes, hurricanes, tornadoes, wildfires, and severe storms. However, it’s essential to review your policy carefully to ensure all relevant disasters are covered, as some policies might require additional coverage for certain events.

What factors should I consider when choosing storage facility insurance?

When selecting storage facility insurance, consider coverage limits, deductibles, exclusions, and specific provisions for natural disasters. Ensure the policy covers the total replacement cost of your facility and contents, understand what is and isn’t covered, and check for any additional coverage needed for specific natural disasters.

Why is it important to have storage facility insurance?

Having storage facility insurance is crucial because it provides financial protection against significant damage caused by natural disasters. Without proper insurance, you could face substantial repair and replacement costs, potentially jeopardizing your business’s financial stability and future. Insurance helps ensure your business can recover quickly and continue operating even after a disaster.