---
title: "Should self-storage facilities make tenant insurance mandatory?"
description: "**Short answer:** Mark makes tenant insurance (or tenant protection) mandatory and calls it a win-win. The owner’s policy doesn’t cover tenants’ belongings, so tenants get coverage for a modest monthly charge, the facility earns income, and it can also help…"
url: "https://creatingwealththroughselfstorage.com/docs/mandatory-tenant-insurance/"
updated: "2026-10-16"
category: "Operations & Management"
---

# Should self-storage facilities make tenant insurance mandatory?

**Short answer:** Mark makes tenant insurance (or tenant protection) mandatory and calls it a win-win. The owner’s policy doesn’t cover tenants’ belongings, so tenants get coverage for a modest monthly charge, the facility earns income, and it can also help the owner’s own insurance rates.

## How Mark sets it up

Tenant insurance is added to every rental with a basic level of coverage, and tenants can buy more. Anyone who doesn’t want it can bring a declaration page from their homeowner’s policy showing their stored goods are covered, and it is removed. In Mark’s experience few people do.

## Why it’s a win-win

- The facility’s insurance doesn’t cover tenants’ contents. If something is worth storing, it’s worth insuring.
- A homeowner’s policy may or may not cover goods stored off-site, and a claim on it can raise the tenant’s premiums for years.
- After a fire or weather event, the owner can be on the tenant’s side helping with the claim instead of in an adversarial position.
- Insurance carriers see tenant coverage as an extra layer of protection, which can help the owner’s property insurance rate.

If competitors don’t require it, some owners worry tenants will leave. Mark doubts many will.

## Related answers

- [What add-on revenue can a self-storage facility offer?](/docs/self-storage-add-on-revenue/)
- [How can self-storage owners lower their property insurance costs?](/docs/lower-self-storage-property-insurance-costs/)
- [What insurance riders and deductibles should self-storage owners consider?](/docs/insurance-riders-and-deductibles-self-storage/)

**Source:** Mark’s posts [Self-Storage Revenue Strategies for 2026 Part 3 – Increase Add-on Revenue](/self-storage-revenue-strategies-for-2026-part-3-increase-add-on-revenue-in-2026/) and [Insurance Shock: How Self-Storage Owners Can Fight Back in 2026](/insurance-shock-how-self-storage-owners-can-fight-back-in-2026/)

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