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A New York state senator has introduced a bill that would allow self storage operators to enjoy the same insurance sales benefits as car rental companies in the state. Sen. James Seward, Chairman of the Senate Insurance Committee, is sponsoring SB 6894, a bill that will provide specialty licensing for the purposes of selling over-the-counter tenant insurance. A similar bill is expected to be introduced in the New York Assembly during the next couple of weeks.
New York is the latest in an ongoing effort by the SSA and its members to confer limited insurance sales rights to self storage operators. Currently seven states have instituted specialty insurance licensing for self storage operators in some form, the latest being Arizona. The others include California, Florida, Illinois, New Jersey, North Carolina and Texas. There is no such law in Ohio; however it is permitted according to the states' Department of Insurance.
The requirement is particularly necessary in states that statutorily require that only licensed insurance agents sell any type of policy, even for relatively modest coverage such as temporary rental car usage and self storage. In other parts of the country offering tenant insurance is usually exempted from licensing when offered under group insurance coverage, however the laws are not uniform. In such cases the model bill offered through the SSA can clarify the situations.
While Self Storage operators are not required to offer tenant insurance, most leases/rental agreements have an insurance requirement. Offering coverage can be a convenient solution that helps your tenant satisfy your lease requirements and can be source of ancillary revenue while providing convenient peace of mind to your tenants.
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