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Maximizing efficiency and minimizing risk for landlord and tenant insurance policies

Wednesday, January 31, 2024

Landlords play a crucial role in ensuring the safety and well-being of their tenants, including encouraging them to carry adequate insurance. Tenant insurance goes beyond coverage of a rental property’s contents—it also protects against unforeseen events and liability.

The implications of not having coverage can be costlyIf a tenant leaves a tap running or leaves a pot on the stove that burns and sets off the sprinkler system, it is the renter’s insurance policy which should cover the damage. When a tenant is not insured, the cost either falls to the landlord to pay for the damage to the units out of pocket, or to submit a claim to their own insurer and pay the applicable deductible. This can be a huge expense. While a landlord can sue a tenant for repayment of damage occurred to the suite or building, the chances of a tenant having sufficient funds to cover a mid to large bill are slim. 

Safeguarding Investments

For landlords, enforcing a tenant insurance rule reduces landlord liability in the event of tenant-caused damage to the building. It allows landlords to potentially reduce the cost of their own insurance as tenant-caused damages would be covered under the tenant’s insurance policy rather than the property owner’s. Including a clause in lease agreements mandating tenants to maintain active insurance coverage not only safeguards the landlord’s investments, but also fosters a sense of responsibility among tenants. Tenant insurance complements the landlord’s coverage by safeguarding the tenant’s personal property and provides liability protection. A comprehensive tenant insurance policy is designed to protect tenants, their belongings and liability. It provides coverage for various scenarios, including Additional Living Expenses (ALE) in cases where the rented property becomes uninhabitable due to a covered event. 

Couple reviewing online insurance policyIn addition, when tenants have insurance, they are less likely to seek legal action against landlords for damages or losses, as they have coverage for their personal property and liability. Proactive education can have a profound impact on enhancing the overall well-being of rental properties. Landlords play a pivotal role in fostering a secure and harmonious rental environment. By prioritizing educational resources for both landlords and their tenants, landlords can mitigate risks, streamline communications, and effectively utilize technology. 

Insurance Status Reports

While landlords can request proof of insurance to ensure continuous coverage, keeping track of new and renewed policies from tenants is a time intensive administrative task. Despite the importance of tenant insurance, achieving universal compliance remains a challenge. Some tenants may overlook the necessity, leading to gaps in coverage. Landlords face the task of encouraging and enforcing insurance requirements consistently. Westland Express streamlines this process for landlords, by simplifying the insurance journey for both landlords and tenants through an easy-to-navigate online platform, providing landlords with valuable insights and comprehensive reports to streamline property management. This includes the ability for landlords to generate Tenant Insurance Status reports detailing the current insurance status of their tenants. Landlords can easily gather information on tenants with active insurance policies, allowing them to quickly assess the overall coverage within their rental properties.  

The Westland Express platform also provides insights into upcoming insurance policy cancellations and sends the landlord advance notice about policies set to expire, enabling them to proactively communicate with tenants to ensure continuous coverage. Likewise, when a new insurance policy is set up by a tenant, the landlord will receive a Policy Activation Notification. This real-time system keeps landlords informed about changes in insurance status, allowing for prompt updates to their records.  

These reports and insights are accessible through an intuitive and user-friendly dashboard within the Westland Express platform, empowering landlords with actionable information, allowing them to efficiently manage their properties and ensure the well-being of both their investments and tenants. 

When it comes to the claims process, apartment insurance can be intricate and time-consuming. Both landlords and tenants may encounter challenges when navigating through the paperwork and procedures with filling and processing claims. Streamlining and simplifying these processes is imperative. While advancements in technology have introduced digital platforms like Westland Express for insurance management, not all landlords and tenants may be technologically proficient. Bridging the digital divide and ensuring accessibility for all stakeholders is a priority for a comprehensive and inclusive insurance experience. 

Innovation Award Winner

Recipient of the Innovation Award at the 2023 Calgary Residential Rental Association Awards, Westland Express has been a leader in the digital insurance world for over a decade. The evolving nature of insurance risks including climate-related events and cybersecurity threats, requires the insurance industry to provide policies which adequately cover new types of threats. 

Addressing these problems requires a collaborative effort from insurance providers, regulatory bodies, landlords, and tenants. Continuous education, technological innovation, and a commitment to enhancing the overall insurance experience can contribute to fortifying the apartment insurance industry for the future. 

By partnering with Westland Express, landlords can leverage the power of tenant insurance to reduce liability, streamline administration, enhance tenant satisfaction, access valuable reports and insights, and ultimately create a safer, more secure rental environment. 


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