The Post-CAT Market Is Here: What Every Self-Storage Owner Needs to Know About Insurance
- Kevin Harless
- Jul 21
- 3 min read
Rising Insurance Costs: How to Protect Your NOI in a Post-CAT Market — A Conversation Every Storage Owner Needs to Have
Let’s talk about something that’s probably been quietly chewing away at your margins lately: insurance.
I’ve been having this conversation more and more with owners across the country, especially in coastal or high-risk areas. One thing’s become painfully clear—this isn’t just a line-item increase. We’re dealing with a fundamental shift in how insurance works for self-storage. And if you're not adjusting your strategy accordingly, your NOI is going to feel it.
The New Reality: Welcome to the Post-CAT Market
It used to be you’d renew your insurance once a year, maybe grumble about a modest increase, and move on. But now? The game has changed.
We’re in what the industry is calling a “Post-CAT” market. That means more catastrophic weather events—hurricanes, wildfires, hailstorms, floods—and insurers are adjusting not just rates, but how they cover risk.
Carriers are pulling out of markets altogether. Premiums are doubling. Deductibles are now percentage-based and tied to building value, not just flat dollar amounts. Some properties can’t even get full coverage anymore. It’s not just frustrating—it’s confusing.
And when things get confusing, that’s when you need a real partner in your corner.
Your First Move? Get a Great Insurance Broker
I can’t stress this enough: in today’s market, a great insurance broker isn’t a luxury. They’re essential.
You need someone who lives and breathes commercial storage policies, not a generalist who handles strip malls and pizza shops one day and tries to insure your facility the next. A true specialist will walk you through the intricate details—like which carriers are still active in your market, what risk mitigation strategies actually help reduce premiums, and how to restructure your policy in a way that protects your NOI without putting you at unnecessary risk.
I’ve seen brokers come in, restructure how wind/hail coverage is split across buildings, and save owners six figures over three years. That kind of insight doesn’t come from a Google search—it comes from experience in this industry.
What You Can Do Right Now
Let me be clear—there’s no magic bullet here. But there is a playbook. And it starts with understanding your exposure and being proactive instead of reactive.
Have a real conversation with your broker about your risk profile. Look at your deductible levels—does it make sense to carry a higher deductible to lower your premiums, especially if you haven’t filed a claim in years? Are you insuring metal buildings for full replacement cost when maybe you don’t need to?
Also, talk through bundling opportunities. Maybe your general liability, property, and business interruption coverages could be packaged in a smarter way. Or maybe it’s time to revisit your valuations—especially with construction costs fluctuating. Over-insuring costs money. Under-insuring could cost you everything.
One big area of value? Risk mitigation improvements. Carriers love to see investment in things like firewalls, security systems, and reinforced gates. Those aren’t just feel-good upgrades—they can reduce your rates and make you more attractive to underwriters.
Don’t Let Insurance Eat Your NOI
And here’s the tough part: if your premiums are up and you’ve already optimized your policy… then yes, you may need to pass some of that cost through rent increases. But do it smartly.
Many owners fear raising rates. But the truth is, customers understand rising costs—especially if you’re transparent and pair it with facility improvements. What you can’t do is let insurance squeeze your margins year over year without a plan. That’s how good facilities slowly bleed value.
Have an In Depth Conversation with a "GREAT BROKER"
Look, insurance isn’t the most glamorous part of running a self-storage business—but it’s become one of the most important. In this post-CAT world, you don’t just need coverage. You need a strategy.
So if you haven’t had a deep conversation with your broker lately, now’s the time. And if your broker can’t walk you through the nuances of this market, it may be time to find one who can.
Your NOI will thank you.
Want help finding a great insurance partner who knows storage inside and out? Let’s talk. We’ve worked with brokers who don’t just quote—they educate, negotiate, and protect your margins like their own.
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