How to secure the best insurance rates

Tips and insights from Mark Fujita of APOLLO Insurance
Thursday, October 5, 2023

Canada’s insurance landscape has changed dramatically in recent years, and for multi-residential landlords, the road forward has been particularly fraught with added costs and complications. According to Mark Fujita, the newly appointed VP of Partnerships at APOLLO Insurance, increases in overall property insurance costs have been steeper than ever, driven by significant losses for water damage, fire, and natural disasters, combined with inflationary pressure increasing the costs of claims through labour and materials.

“This pricing ‘hard market’ is leading to higher deductibles and reduced coverage options,” he said. “Higher interest rates and natural disasters are driving capital to look to other investments instead of insurance, meaning reinsurance companies and primary insurance companies have been raising their prices or exiting some categories or geographies.”

In light of this stark reality, we asked Fujita to share some tips and suggestions for multi-res landlords seeking coverage in 2023 and beyond:

What’s changed the most for landlords and tenants on the insurance front recently?

A big change we’re seeing is that building insurance providers are craving more data about the physical structure, as well as ongoing data from smart building systems to inform sophisticated risk management practices and insurance pricing. We’re also seeing an increasing number of landlords requiring proof of insurance as a condition of their leases, which means they have the added administrative challenge of validating and tracking renters insurance for each resident. For the tenants, the experience of getting insurance has improved greatly thanks to the ability to get quotes and buy coverage online, or even by having an insurance offering embedded directly into the lease execution process.

Will rates continue to climb in the foreseeable future?

Frequency of water damage claims continues to be a challenge in multifamily buildings, particularly in newer buildings equipped with inexpensive connection parts for washing machines and dishwashers. Also, the severity and frequency of natural disasters is putting pressure on property insurance globally, and this isn’t likely to change anytime soon. On the positive side, as Canada’s inflation rate slows and interest rates stabilize, we should see some easing of industry rate increases.

 What can multi-residential property owners do to secure the best rates?

Insurers today prefer property owners that focus on risk management, so having risk reduction and mitigation measures in place will help landlords get better rates. Some examples of risk mitigation include making properties non-smoking, limiting BBQs on patios, reviewing hose connections for water-based appliances, having leak detection alarms, water shutoff valves and caging fire sprinklers in place. Another great way to reduce risk and therefore reduce costs is to have a well-defined and tracked renters insurance program to recover costs for claims that were caused by tenant negligence.

Any other advice for landlords and renters?

For landlords, the best thing to do is ensure a comprehensive renters insurance program is in effect. The landlord can mitigate reputational, business, and personal risk by ensuring their tenants have proper insurance. Also, landlords and tenants alike should consider the inevitability of natural disasters and have a plan in place in case evacuation is needed due to a catastrophic event, such as a fire or flood. For renters, having adequate coverage for contents, additional living expenses and liability, will reduce their personal risk of loss. Most tenants underestimate the total cost to replace their belongings, plus the cost of living in a hotel in the event their unit is rendered uninhabitable. They also underestimate the number of claims that are caused by their neighbours, such as a leak in the unit above them or a fire. Modern renters’ insurance policies insure much more than what’s inside the tenant’s apartment; they can provide coverage for property in their storage unit, work supplies and tools related to their business, and even items they’ve brought with them on a trip.

APOLLO Insurance is a Canadian digital insurance provider and innovator in the emerging embedded insurance sector. Last year, APOLLO partnered with Yardi Systems to offer an insurance interface embedded into Yardi’s software that allows Canadian tenants and landlords “an effortless digital insurance experience.”

Find out more at:


Leave a Reply

Your email address will not be published. Required fields are marked *

In our efforts to deter spam comments, please type in the missing part of this simple calculation: *Time limit exceeded. Please complete the captcha once again.