By Leah DeMasters
RV and boat storage is booming. But while demand is rising, so are the risks and too many operators are still relying on generic insurance policies that don’t match the reality of what they’re storing or how they’re structured.
In a recent conversation with industry leaders, Attorney Scott Zucker and Terry Campbell of Johnson Insurance, broke down why that’s a problem.
What most facility owners miss
“When it comes to RV and boat storage, coverage isn’t just about property damage,” says Terry. “It’s about understanding how liability shifts when you have high-value customer vehicles on-site, when those vehicles are plugged in, fueled up or exposed to weather.”
Many policies don’t account for the unique configurations of RV and boat storage—like open-air canopy parking, enclosed garages or stacked vertical storage. Worse, some operators assume their personal umbrella or standard commercial policy will cover everything. Spoiler alert: It won’t.
What the right insurance strategy should include
- Consider Higher Liability coverage: In regular self-storage, you are not normally aware of what is being stored or the value of it (even though you will have a limit of value in your lease agreement) but with Boat and RV, especially open or canopy type storage, you will be able to see that these are much higher-valued items being stored. If there is ever an issue, the tenant’s attorney will probably try to use this against you.
- Pollution Coverage: Boats, RVs and cars are usually going to have fuel in the tanks, propane tanks, etc. If a leak happens or some sort of pollution event happens, you could have an expensive cost for cleanup, especially if state or federal agencies get involved.
- Tenant coverage: Your rental agreement should require the tenant to prove that they are the registered owner, and they should maintain full and current coverage on what they are storing.
- Additional insured: The tenant should be required to make your company and additional insured while they are using your facility for storage. Why, you may ask? Let’s say that they have stored some scooters with lithium batteries in their RV. Overnight, one of the batteries decide to catch fire….it burns not only their unit, but also part of your building and the 5 campers and boats stored near them. You want their coverage to pay for this, not yours.
Takeaway for RV & boat storage operators
Don’t leave your business exposed with a one-size-fits-all policy. The more specialized your facility, the more specialized your coverage needs to be.
Whether you’re new to the space or expanding an existing self-storage portfolio into RV and boat storage, now’s the time to assess your insurance the same way you assess your site plan: with intention, accuracy and expertise.
Watch the Outside the Box podcast
Johnson Insurance Services launched in January 25, featuring self-storage veteran Terry Campbell discussing a wide variety of storage topics with other industry leaders. Watch the full discussion of the RV & Boat Storage Insurance edition here: https://gojohnsoninsurance.com/blog/outside-the-box-legal-insights-by-scott-zucker/.
Most recent episodes with Campbell, who also serves on the Toy Storage Nation Advisory Board, include discussions about storage lending and parametric insurance, which offers a flexible method of filling coverage gaps for self-storage and commercial properties.
Leah DeMasters is a Strategic Growth & Marketing Specialist at Johnson Insurance Services. Based in Mocksville, N.C., Johnson Insurance Services is an independent agency with over 109 years of history. Renowned for delivering white-glove service and client advocacy, the agency maintains a 97% client retention rate thanks to its unwavering commitment to customer satisfaction. Leveraging an extensive network of carriers, Johnson Insurance secures the best rates and comprehensive coverage for both commercial and personal clients, offering tailored solutions across various sectors, including agriculture, wineries, self-storage and golf courses. For more information, visit gojohnsoninsurance.com or connect directly with Terry Johnson at terry@gojohnsonins.com.
