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Michigan Self-Storage Insurance Changes

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Update: On January, 14 2015 House Bill 4485 was vetoed by Governor Rick Snyder.

Changes are on the way in 2015 for Michigan Self-Storage facilities. A new bill, introduced in March 2013, is ready for the Governor’s signature. What does this bill do? Well, House Bill 4485 is going to make it easier for self-storage facilities to offer self-storage insurance to cover tenants stored items. Michigan self-storage facilities better pay attention.

Michigan Self-Storage Insurance Bill

Photo Credit: Schoolhouse Rock

The bill passed the Senate on December 17, 2014 and the House on December 18, 2014, now it waits to be signed by governor Rick Snyder. When signed, House Bill 4485 will change how self-storage facilities are authorized to offer insurance coverage to their tenants. Storage property insurance, as defined by the bill, is “insurance that provides coverage fr the loss of, or damages to, tangible personal property contained in a storage space located on a self-service storage facilities or in transit during terms of a self-service storage facility rental agreement”. The bill will make it easier for facilities to offer coverage.  Once signed into law, House Bil 4485 will allow self-storage facilities to offer storage property insurance without holding an insurance producer license. Before this amendment to the Insurance Code of 1956, an insurance producer license was needed in order for an individual or business to be authorized to sell, solicit, or negotiate insurance.

There are regulations on how the information must be presented to the tenant. According to the Senate’s Summary of the bill the following must be provided to the tenant at the time insurance is offered.

  • A disclosure that the insurance might duplicate coverage already provided by the customer’s renters, homeowners, or other insurance policies.
  • A summary of material terms of insurance coverage, including:
    • The identity of the insurer
    • The benefits of the coverage
    • The key terms and conditions of the coverage
  • A summary of the process for filing a claim

House Bill 4485 will make it easier for self-storage facilities to offer coverage to their tenants because no additional licenses will be needed. A license will not be needed as long as the sale of insurance is for stored property sold in connection with the rental of a storage unit at a self-storage facility. Be informed, read House Bill 4485 by clicking here.

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Bio:

Author : Andrea GreenwaldAndrea enjoys helping others as an Operations Analyst for the U-Haul Self-Storage Affiliate Network. Along with her duties as an operations analyst, Andrea manages the U-Haul Self-Storage Affiliate Network’s social media pages. She is currently studying at Gannon University earning her MBA in Marketing and has previous experience in marketing and event planning. In her free time she enjoys going bowling and has recently hit her highest score of 150.