A practical guide to risk management for self-storage operators
Are You Insured Correctly? In today’s self-storage market, risk management isn’t just a compliance exercise, it’s critical to protecting your business, your reputation, and your long-term success. At Basil Fry, we work closely with operators across the sector to ensure their insurance arrangements genuinely reflect the risks they face. Yet one of the most common issues we encounter is simple, many businesses are not insured correctly. The Hidden Risk of Underinsurance Insurance should provide peace of mind and not just tick a box. However, underinsurance is widespread. Recent surveys suggest that a large proportion of UK commercial properties are insured below their true value. For self-storage operators, this can have serious financial consequences. If your sums insured are too low, the average clause can apply. This means your insurer will only pay a proportion of any claim, even for partial losses. For example: If the cost to rebuild your building is £10 million but insured for only £7 million, you are effectively 70% covered. A £1 million claim could result in a payout of just £700,000, leaving you to fund the remaining £300,000. That shortfall can be the difference between recovery and long-term disruption. Getting Your Property Values Right Buildings When insuring your property, it’s essential to base your sum insured on rebuild cost and not market value. This should include: Full reconstruction costs Labour and materials at current prices Debris removal Professional fees External structures such as walls, gates and yards Market valuations or mortgage figures are not suitable for insurance and often exclude key elements. We recommend reviewing rebuild costs regularly, with a professional valuation at least every three years. Fit Out and Improvements Self-storage facilities often include significant investment in: Units and partitioning Access systems Security infrastructure These costs must be reflected accurately in your cover. If [...]









