Be Aware of Deceptive Self-Storage Insurance Practices

Self-storage is becoming increasingly popular to store family heirlooms, items that don’t fit at home, or even just as temporary storage. With a quick internet search, it’s easy to find hundreds of complaints by people who rent self-storage units.

Many deceived customers who bought tenant insurance policies for a self-storage unit were told by their self-storage company that it was collecting premiums and passing them on to an independent insurance company. In actuality, the company retained a large portion of premiums, making the tenant insurance company a major source of profit—a fact not adequately disclosed to those it insured.

Several national self-storage companies have recently settled class-action lawsuits in California and Florida because they misrepresented how it was using premiums collected by tenants who bought its insurance.

A few tips before you rent a self-storage unit:

  1. Make sure you read the fine print of the contract. Look for all hidden rent increases after the initial introductory period.

  2. If the company requires you to purchase insurance for your storage unit, look into all options. The company may attempt to push their own insurance on you. Do not automatically accept this insurance unless it is the best option for you.

  3. If a self-storage unit that you rent is burglarized or the contents are ruined due to the negligence of the storage company and your insurance will not pay at all or the full amount that is owed to you, legal recourse may be available to you against that company or its insurer.

  4. If the cleanliness of the storage unit is not up to par, speak with the management of that facility. If nothing is improved, do not just accept it. Be persistent in requiring acceptable standards being met, or request to be released from your contract.

If you have been a victim of an insurance premium deception, false or misleading advertising practices for the cost of your unit or your property has been wrongfully auctioned off, give us a call. We can help.