What is Damage Waiver Insurance and How Does it Work?

Loading, unloading, and transporting mobile storage units can expose them and their contents to accidental damage. Damage waiver insurance not only protects against these risks but also offers storage facility operators a way to enhance their revenue stream.

This insurance covers accidental damages—such as those caused by mishandling during the loading or unloading process or during transit—that are typically excluded from renters’ insurance policies, which focus on theft, fire, and natural disasters. It provides peace of mind for both tenants and businesses.

What is Damage Waiver Insurance?

Damage Waiver Insurance

With damage waiver insurance, tenants’ belongings stored at your facility or in mobile storage containers are safeguarded against accidental damage.

This optional protection not only eases the liability for storage facility owners but also offers tenants the confidence of knowing their property is covered. It’s a smart way for facility owners to address potential risks and ensure peace of mind for all parties involved.

How Does Damage Waiver Insurance Differ from Traditional Insurance?

Damage waiver insurance is specifically designed to cover accidental damage to stored goods. Here’s how it differs from traditional renters’ insurance:

Coverage Focus: Traditional renters’ insurance covers risks like theft and fire. Damage waiver Insurance focuses on accidents, such as items being dropped or damaged during transportation.

Liability: With traditional insurance, the facility might be held responsible for some types of damage. Damage waiver insurance transfers liability to the insurance company, protecting both the tenant and the storage provider.

Cost: The coverage options typically range from $1,000 to $20,000, with deductibles based on the coverage amount selected:

$1,000 to $2,500 coverage: $100 deductible.
$2,501 to $5,000 coverage: $250 deductible.
Over $5,000 coverage: $500 deductible.

How Does Damage Waiver Insurance Work?

When tenants opt into damage waiver insurance, the process is too simple:

Tenant Enrollment: Tenants select the coverage they need during the rental process and pay the monthly premium.
Protection: Coverage begins immediately upon the first payment. It continues month-to-month as long as the tenant maintains their payments.
Claims: In the event of accidental damage, tenants file claims with the insurance provider. Depending on the coverage amount, there may be a deductible, ranging from $100 to $500, that tenants will need to pay.

Types of Damage Covered

Damage waiver insurance typically covers the following types of incidents:

Accidental Damage: Includes mishaps during loading or unloading, or handling by facility staff.
Environmental Damage: Protection against damages caused by natural events like storms or water leakage.
Mobile Storage Container Protection: Covers damages to the mobile storage container itself, ensuring full protection from top to bottom.

Why Damage Waiver Insurance Matters for Storage Facility Owners

For storage facility operators, offering damage waiver insurance is beneficial for several reasons:

New Revenue Stream: By partnering with an insurance provider, storage facilities can earn a significant share of the monthly insurance premiums.
Reduced Liability: With this insurance in place, the responsibility for accidental damage shifts from the storage facility to the insurance company, lowering liability risks.
Competitive Edge: Offering damage waiver insurance can make your facility more attractive to potential tenants, providing them with a sense of security that other facilities may not offer.
Simplified Claims: The insurance provider handles all claims, making the process simpler for both the facility owner and the tenants.

For comprehensive storage unit rental insurance, Storage Protectors has you covered.

We provide a wide variety of insurance plans designed specifically for mobile storage businesses, giving you peace of mind that your customers’ possessions are secure while stored at your location.

Why Choose Storage Protectors?

Storage Protectors offers damage waiver insurance for mobile storage businesses. The program is underwritten by Obsidian Specialty Insurance Company and administered by Airpark Insurance and Risk Management, ensuring a high-quality, reliable solution.

Key details about the program include:

Coverage Amounts: Available in coverage options from $1,000 to $20,000.

Deductibles: Vary based on the coverage level chosen:

$1,000 to $2,500 coverage: $100 deductible.

$2,501 to $5,000 coverage: $250 deductible.

Over $5,000 coverage: $500 deductible.

Coverage Period: The coverage is month-to-month, offering flexibility for tenants and facility owners alike.

For added protection and simplicity in your business operations, Mobile Storage Unit Insurance from Storage Protectors is an ideal choice. We cover everything, from personal and business contents to mobile storage containers themselves.

Conclusion

Adding damage waiver insurance to your storage facility’s offerings is a smart move with benefits for everyone. For tenants, it provides an extra layer of protection, ensuring their belongings are covered in case of unexpected incidents during storage.

For storage providers, it reduces liability while offering a new way to generate additional revenue. This type of insurance also stands out for its simplicity—claims are easy to process, and the coverage options are designed to be flexible.

Beyond the financial and practical advantages, offering damage waiver insurance shows your commitment to customer care and strengthens your facility’s reputation. If you’re looking to protect your business and provide even better service, this is a step worth considering.

Frequently Asked Questions

Are There Different Damage Waiver Options for Different Storage Units?

Damage waiver insurance offers coverage for accidental damage to tenants’ belongings stored in mobile storage units. It protects against mishandling during loading, unloading, or transport.

Coverage options range from $1,000 to $20,000, with deductibles based on the coverage level: $100 for $1,000–$2,500, $250 for $2,501–$5,000, and $500 for amounts over $5,000.

This month-to-month coverage starts upon payment and helps reduce liability for storage facility owners. It’s an essential service that boosts revenue, protects both tenants and businesses, and simplifies claims management.

Is Damage Waiver Insurance Mandatory for Tenants?

Tenants are not required to purchase damage waiver insurance—it’s completely optional. This coverage is designed to safeguard their belongings from accidental damage during storage or transport.

While it offers an extra layer of protection, tenants can decide whether or not to enroll. Renting a storage unit doesn’t depend on having this insurance.

Does Damage Waiver Insurance Cover Damage Caused By Pests or Mold?

No, damage waiver insurance usually does not include coverage for damage caused by pests or mold. Since these issues are generally viewed as preventable through proper upkeep, they are typically excluded from the policy.