New York to License Self-Storers, Open Up Car Rental Coverage Options

Self-storage company operators in New York will be allowed to obtain insurance licenses to sell contents coverage to their clients, under a law signed recently by Gov. David Paterson.

The law allows the state’s Department of Insurance to grant limited insurance licenses to self-storage firms that would allow them to write some types of policies on an authorized basis for insurers in the state.

The coverage – for damage to the facility as well as personal property – would be provided at points of sale to those who rent space.

Along with rental car firms and wireless equipment dealers, self-storage operators are now a third class of retail establishment to gain the ability to obtain limited insurance licenses in New York.

It was not the only insurance-related bill signed by Paterson.

Another bill signed last month bars auto insurers from requiring consumers to use a specific vehicle rental company when obtaining substitute transportation coverage on their policies.

Insurance companies must also inform consumers of their right to choose a vehicle rental company, according to the newly enacted law.