Tenant protection / Insurance pricing ways?

Charlie33 · May 2024

Was wondering if anyone has any input into adding the price of basic TPP/Ins directly into their standard rates.
We are getting pushback from customers about the added fee in TPP/Ins. We have been doing storage for 25 plus years and are seeing it more and more. And now that everyone wants auto enroll on, we are thinking of just upping our standard rates and letting customers know price includes $2000 worth of protection... What are your thoughts good or bad?

MamaDuke7 · May 2024

Interesting that you're getting push-back. I'm getting almost none these days because almost all storage properties require the insurance/TPP.

I do make sure to just quote the rate including the base coverage, but when they look at online rates, it's not included. But when I tell them it's required, or they rent online and have no choice, I don't get complaints. A few years ago, I did.

Also, for proper financial reports, I don't see how you could get away with just adding it into the rental price. It needs to be a separate line item.

gwalters · July 12

I think it depends on how you present it to customers. We’ve found that people usually push back less when they understand what they’re paying for and why. It’s similar to comparing different options and explaining the value, rather than just adding a fee, which is something I’ve seen discussed here too: https://essaypay.com/blog/interesting-compare-and-contrast-essay-topics/. I’d probably test a small rate increase first and see how customers react.

KellyR · July 13

MamaDuke7 said:

Interesting that you're getting push-back. I'm getting almost none these days because almost all storage properties require the insurance/TPP.

I do make sure to just quote the rate including the base coverage, but when they look at online rates, it's not included. But when I tell them it's required, or they rent online and have no choice, I don't get complaints. A few years ago, I did.

Also, for proper financial reports, I don't see how you could get away with just adding it into the rental price. It needs to be a separate line item.

That's exactly how we handle it. Quote them the price w/the minimum coverage. They almost always say "that's different than the online pricing", to which we state "we quote w/basic insurance premium because property coverage is required, unless you'd like to provide a homeowners or renters insurance policy."

Tenant protection / Insurance pricing ways?

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