Contact your state senators to support Senate Bill 14 on Limited Lines Insurance
The self storage industry began in the early 1970s. It became clear before long that there was no easy solution to nonpayment and abandonment situations. By the mid-1990s, 48 states had adopted some form of lien law, often calling these new sections “The Self-Service Storage Facility Act. Kansas has been at the forefront of lien law modernization, having made modernization changes in 2012.
The effort this year addresses tenant insurance. Currently 25 states formally allow for some form of “pay with rent insurance,” wherein the facility owner can offer and bill the insurance with rent payments. These lf storage industry has identified that states without a specific provision regarding tenant insurance leads to ambiguity and perhaps a legal vulnerability.
Here are six key points to remember about Limited Lines Insurance:
✓ Limited lines insurance agent and producer licenses are mechanisms for consumers to obtain needed ancillary insurance coverage, usually connected to specific goods or services from businesses that do not hold general producer licenses
✓ Limited lines are common solutions for insurance in industries such as travel, rental cars, mobile electronics and self storage.
✓ Limited lines allows self storage facilities to offer consumers an affordable insurance option if they do not hold a homeowners or renters insurance policy that may cover contents within a storage unit.
✓ Insurance departments typically require some basic training for employees (owners/managers/rental agents) regarding insurance coverage sold by limited lines insurance producers
✓ Limited lines licenses enable the licensed facility to provide their customers' needed protections and receive compensation/commission. The licensed facility may compensate employees of the facility a nominal fee as long as the compensation/ fee is not solely based on the sale of insurance.
✓ 25 states currently allow self-storage limited lines insurance: Arizona, Arkansas, California, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan (exemption), Minnesota (exemption), Massachusetts, Missouri, North Carolina, New York, Ohio, Oregon, South Carolina, Tennessee, Texas, Washington, New Jersey, Utah and Virginia.
Nationally, the Self Storage Industry has more than 50,600 facilities across the United States. Kansas is the 27th largest with a little more than 700 facilities. The Kansas Self Storage Owners Association has 110 members throughout the state. We would like your support on this in reaching out to your state senators. Encourage your neighboring facilities to join the association and help protect our industry. Help spread the word on this Call To Action.
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