Self-storage facilities have become more than off-site locations for people that own too many things. For over a decade the storage industry has been growing at an incredible rate. There is almost no limit as to who can rent storage space; the market is already consumed by homeowners, college students, businesses, retirees, and more. If insuring self-storage units or facilities is not a part of your book of business, it’s time to take a closer look.
The current storage boom doesn’t show signs of slowing down any time soon. Here are some facts about where storage industry is today.
- There are over 45,000 self-storage facilities within the United States.
- Annual industry revenue is around $38 billion.
- Over 1.7 billion square feet of rentable storage space
- Storage is available for larger items like boats and RVs, as well as specialty items that require climate-controlled units.
Changing Things Up
You may have noticed recently more facilities opening in newer areas. A new generation of storage facilities are beginning to blossom. Facilities aren’t popping up in just rural locations; they are growing in urban and suburban areas too. These newer facilities are coming equipped with fancier exteriors, remote security features, climate-controlled units, 24-hour access, and other services to appeal to a greater number of customers. More than $4 billion was spent on self-storage construction just in 2017.
Opportunity for Insurance Agents
It’s clear that the industry is growing. Although some are saying that the real estate market is slowing down due to millennials spending less and baby boomers getting older and downsizing, these trends actually create a bigger demand for self-storage. Out of the 45,000+ storage facilities in the U.S 73% are owned by small operators, and their facilities need insurance coverage.
As a specialty line, self-storage insurance is an attractive product for independent insurance agents. In addition to being a growing niche market, the industry is considered resistant to the effects of recession. Agents have a real opportunity to partner with self-storage facilities as an insurance provider.
MiniCo has been the leading provider of specialty insurance for self-storage risks since 1974. We work with independent agents to provide customized solutions for self-storage business owners. Contact MiniCo to learn more about our newly upgraded self-storage BOP and other supporting solutions.