Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

The Lease Language Trap That Won’t Actually Protect you

28 Apr 2026 · 1 min

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In this segment, the speaker highlights a common but dangerous oversight in outdoor vehicle storage agreements: the neglect of bailee (operator) insurance coverage. Many boat and RV storage leases contain broad exculpatory clauses stating that the tenant stores the vehicle at their own risk and that the operator is not liable for loss, damage, or theft. The presenter explains that such language does not automatically shield the operator because courts in several jurisdictions have refused to enforce overly broad exculpatory provisions when the operator’s own negligence contributed to the loss. The segment serves as a warning to both storage operators and vehicle owners to scrutinize lease language and ensure appropriate insurance is in place.

Chapters

Bailey's coverage is the most overlooked policy type in outdoor vehicle storage and the one that creates the most unpleasant surprises when it's missing. Here's the language— here's the lease language trap that a lot of owners fall into. Most boat and RV storage leases include a provision stating that vehicles are stored at the tenant's risk and that the operator is not liable for damage, loss, or theft. Many operators believe this provision fully protects them. It does not. First, courts in some jurisdictions have found that broad exculpatory lease clauses are unenforceable in certain circumstances, particularly when the operator's negligence is contributed to— has contributed to the damage.