Leasing and finance
damage waiver
A damage waiver is an optional fee in a rental agreement that limits what the renter owes if the rented unit is damaged. RentalModo's guide gives sample contract language saying a Loss and Damage Waiver, if elected, limits liability for physical damage only. Terms and exclusions differ by company.
Why it matters
A damage waiver is not insurance, though it can feel similar. It usually does not cover the renter's belongings, and it may exclude certain causes, such as misuse or damage from poor site conditions. Without a waiver, the renter may be liable for damage beyond normal wear. A common mistake is to buy a waiver and assume everything is covered. Customers should read what it covers and what it excludes, and ask about a separate contents protection plan. Operators should state the cost and limits plainly. This is not insurance or legal advice.
Read: How much does portable storage cost? Monthly rent, fees and totals
Definition source: rentalmodo.com
Related terms
contents coverage
Contents coverage is protection for the items stored inside a container. PODS explains two kinds of protection: contents protection covers the container and your contents against accidents, burglary and vandalism in listed settings, and container-only protection covers just the container. Terms and exclusions vary by company.
rental agreement
A rental agreement is the contract that sets the terms for renting a container or similar unit. RentalModo says it is usually two or three pages. It covers the rate, minimum term, damage rules, delivery and pickup, and fees. The fine print is often in clauses that renters skim.
security deposit
A security deposit is money a renter pays at the start of a rental. The company holds it to cover possible damage, cleaning or unpaid charges. HZ Containers says a lessor may require a refundable deposit, often equal to one month's rent or a share of container value. Practice varies by company.
general liability insurance
General liability insurance is business coverage for claims of injury or property damage to other people. NAIC defines commercial general liability as flexible and broad commercial liability coverage with two major sub-lines: premises and operations, and products and completed operations. Policies differ in limits and exclusions.
inland marine insurance
Inland marine insurance is property coverage for items that move or sit away from a fixed location. NAIC says it covers property in transit, held by a bailee, at a fixed location, or movable goods often at different locations. Progressive describes it as coverage for tools, equipment and products stored away from your business.
bailment
A bailment is a transfer of possession of property without a transfer of ownership. Cornell's Legal Information Institute defines it that way. The person who delivers the item is the bailor, and the person who receives it is the bailee. The bailee must usually return the item.
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