How many stories can a self-storage facility have to qualify for a BOP?

For a self-storage facility to qualify for a Businessowners Policy (BOP), there is a limitation on the number of stories it can have. A maximum of two stories is stipulated to ensure that the facility meets specific underwriting guidelines typically associated with BOP coverage. This restriction is in place because higher structures may present increased risk factors such as difficulty in compliance with safety regulations, evacuation in emergencies, and potentially higher claims due to damages.

The guidelines establish parameters to determine which types of businesses can secure coverage under a BOP, favoring those that are deemed to have manageable risk. As self-storage facilities can encompass various risk characteristics based on their height and complexity, limiting them to two stories helps insurers maintain a more consistent risk profile.

This regulation is crucial as it helps the insurer assess the risk effectively and could significantly influence how claims are managed in the event of a disaster or loss.