Insurance Provider Research

Comprehensive analysis of storage facility insurance options in New Zealand

📊 Executive Summary

Key findings and recommendations for Max Storage Limited

Based on comprehensive research of the New Zealand insurance market, FMG Insurance emerges as the most suitable primary option for Max Storage Limited, given Jenny's existing relationship, their rural/provincial focus matching Te Waerenga Road location, and their clean regulatory record. However, obtaining quotes from Howden New Zealand (storage specialists) is strongly recommended for comparison.

✅ Top Recommendations

  1. FMG Insurance - Best overall match (rural focus, A rating, no issues)
  2. Howden NZ - Storage specialists worth the broker fee
  3. Vero/NZI - Major players for comparison despite recent penalties

⚠️ Avoid or Approach with Caution

  • Tower Insurance - Currently facing court proceedings for overcharging 65,000 customers
  • AA Insurance - $6.175 million penalty for misleading customers (2024)

🏢 Insurance Provider Comparison

Detailed analysis of major providers serving the storage industry

Provider Best For Financial Rating Storage Expertise Recent Issues Est. Annual Premium Contact
FMG Rural locations A (Excellent) Moderate None $8,000-15,000 0800 366 466
Howden NZ Storage specialists N/A (Broker) Expert None Via broker 09 358 1407
Vero Comprehensive coverage AA- (Very Strong) High $3.9M penalty (2024) $10,000-18,000 Via broker
NZI SME businesses Not specified Moderate Part of Vero group $9,000-16,000 Via broker
Tower ⚠️ Caution Not specified Low Court proceedings $7,000-14,000 Not recommended
AA Insurance ⚠️ Caution Not specified Low $6.175M penalty $8,000-15,000 Not recommended

📋 Detailed Provider Analysis

In-depth information about each insurance provider

FMG Insurance ⭐ Recommended

Overview

  • NZ's leading rural insurer (120,000+ members)
  • 30 regional offices throughout NZ
  • Mutual company (100% member-owned)
  • A (Excellent) rating from A.M. Best

Coverage Includes

  • Commercial property and buildings
  • Farm contents and structures
  • Legal liability protection
  • Rural dwellings, sheds, fences
  • Up to $30,000 temporary accommodation

Why Choose FMG

  • ✅ Perfect for rural Te Waerenga Road location
  • ✅ Jenny already identified them
  • ✅ No recent regulatory issues
  • ✅ Strong mutual structure
Contact: 0800 366 466
Email: contact@fmg.co.nz
Website: www.fmg.co.nz

Howden NZ ⭐ Specialist

Overview

  • Formerly Wallace McLean
  • Self-storage insurance specialists
  • Years of industry experience
  • Tailored storage solutions

Unique Benefits

  • Deep storage sector expertise
  • Can structure customer insurance
  • Covers moths, insects, vermin damage
  • Understanding of industry risks

Coverage Includes

  • Fire, explosion, lightning
  • Storm, flood, water damage
  • Impact, burglary, theft
  • Natural disasters
  • Bailees liability options
Contact: 09 358 1407
Website: Storage Specialists
Ask for: Self-storage specialist

Vero Insurance

Overview

  • Leading intermediated insurer
  • AA- (Very Strong) S&P rating
  • 97%+ claims payout rate
  • Specialist liability division

Storage Claims Data (2022-2025)

  • 31% Burglary/Theft
  • 22% Accidental damage
  • 20% Impact damage
  • 10% Water damage
  • 6% Fire/Explosion
⚠️ Recent Issue: $3.9M penalty for discount failures
Note: No multi-policy discounts from May 2025

NZI Insurance

Overview

  • 160+ years in New Zealand
  • Liability One package
  • Focus on SME businesses
  • Part of Vero group

Coverage Options

  • Public Liability insurance
  • Statutory Liability coverage
  • Legal costs protection
  • Property damage coverage

Note: 2024 NZ businesses had liability claims over $330 million

🛡️ Coverage Requirements

Essential insurance coverage for your storage facility

Indoor Storage (6 x 48m² large units + 6 x 12m² small units)

Essential Coverage

  • Building structure insurance
  • Fire and explosion protection
  • Water damage (pipes, roof)
  • Theft and burglary
  • Impact damage (vehicles)
  • Natural disasters
  • Public liability
  • Bailees liability

Risk Factors

  • High-value boats/equipment
  • Water damage potential
  • Security requirements
  • Customer property protection

Outdoor Storage

Essential Coverage

  • Public liability
  • Limited theft coverage
  • Impact damage
  • Storm and hail damage
  • Natural disaster coverage

Risk Factors

  • Weather exposure
  • Lower security level
  • Vehicle/boat damage risks
  • Environmental liability

Location Factors (Te Waerenga Road)

  • Rural/provincial location (FMG advantage)
  • Agricultural surroundings
  • Distance from emergency services
  • Local weather patterns
  • Flood risk assessment
  • Proximity to other businesses

📜 Regulatory Compliance

Insurance-related compliance requirements

Fire Safety Requirements

Regulations Fire and Emergency NZ Regulations 2018
Sprinklers/Alarms Required for 20+ person occupancy
Equipment Hand-operated fire equipment with regulation signage
Maintenance Regular schedule per compliance requirements
Building Code C/AS5 for commercial storage (max 500m², 5.0m height)

⚠️ Common Exclusions & Hidden Costs

Important limitations and cost factors to consider

Never Covered Items

  • ❌ Motor vehicles (motorbikes)
  • ❌ Watercraft (boats) as stored items
  • ❌ Flammable liquids, chemicals
  • ❌ Tobacco products
  • ❌ Wine/alcohol over $5,000
  • ❌ Perishable goods
  • ❌ Money, jewelry over limits
  • ❌ Artworks over $5,000

Premium Increase Factors

  • 📈 Lack of security systems
  • 📈 No fire protection equipment
  • 📈 Poor maintenance records
  • 📈 Claims history
  • 📈 High-risk goods storage
  • 📈 Distance from emergency services

Premium Decrease Factors

  • 📉 Modern construction ✓
  • 📉 Security systems (pin pad planned)
  • 📉 Fire safety compliance
  • 📉 Regular inspections
  • 📉 Good claims history
  • 📉 Risk management procedures

Hidden Costs to Watch

  • Policy administration fees
  • Broker fees (10-20% of premium)
  • Excess increases after claims
  • Mid-term premium adjustments
  • Compliance audit costs
  • Emergency response charges
  • Legal defence costs above limits

💰 Insurance Budget Planning

Estimated costs and implementation strategy

Annual Cost Estimates

Year 1 $15,000-20,000 Start-up loadings
Year 2 $12,000-18,000 Clean history discount
Year 3+ $10,000-15,000 Established business

Your Facility Factors

Positive: New construction, rural location, concrete slab

Negative: No claims history, start-up business

Variable: Security systems, fire protection level

Implementation Phases

Phase 1: Construction Completion

  • Builder's risk insurance (check Totalspan)
  • Public liability during construction
  • Asset protection for completed sections

Phase 2: Soft Launch

  • Full commercial property insurance
  • Public and products liability
  • Bailees liability for customer goods
  • Consider cyber insurance

Phase 3: Full Operation

  • Review and optimize coverage
  • Self-insurance for small claims
  • Group buying opportunities

Cost Management Tips

  1. Bundle coverage - Property + liability together
  2. Higher excess - Lower premiums (balance with cash)
  3. Annual payment - Save 5-10% vs monthly
  4. Safety investments - Reduce premiums long-term
  5. Regular reviews - Market changes rapidly
  6. Claims management - Avoid small claims

👥 Customer Insurance Considerations

Critical information about customer contents coverage

⚠️ Critical Points

  • Storage facility insurance does NOT cover customer contents
  • Must require proof of insurance in rental agreements
  • Home insurance often excludes or limits storage coverage
  • Recommend specialized storage insurance to customers

Customer Insurance Partnership Options

  • Wallace McLean/Howden - Can provide customer insurance programs
  • National Storage model - Lloyd's underwriters partnership
  • Create insurance requirement in terms and conditions
  • Offer optional insurance at point of rental

✅ Immediate Action Checklist

Steps to secure appropriate insurance coverage

Priority Contact List

  1. FMG Insurance (Recommended by Jenny)
    📞 0800 366 466 | 📧 contact@fmg.co.nz
    Ask for: Rural commercial property specialist
  2. Howden New Zealand (Storage Specialists)
    📞 09 358 1407 | 🌐 Website
    Ask for: Self-storage insurance specialist
  3. Local Insurance Broker
    Find via: www.ibanz.co.nz
    Advantage: Compare multiple insurers simultaneously

Documentation to Prepare

  • ✓ Building specifications and construction details
  • ✓ Security system plans (pin pad, cameras)
  • ✓ Fire safety equipment inventory
  • ✓ Site location and access details
  • ✓ Planned storage types (indoor/outdoor)
  • ✓ Customer agreement templates

Annual Review Items

  • Review coverage limits vs asset values
  • Check for new insurance products
  • Benchmark premiums against market
  • Update asset registers
  • Review claims history
  • Check compliance updates
  • Evaluate customer requirements