This is the fourth and final article in the series that highlights tenant insurance from a tenant’s perspective.
As an owner, you should be aware of this so that your insurance plan dovetails appropriately with the tenant’s perspective and responsibilities.

Disclaimer: These articles are intended to raise questions to review with your insurance provider or legal advisor.  This article is not an insurance sales solicitation, legal advice or to be considered a comprehensive evaluation of all tenant risks.
Provided by Sterling Insurance Associates Ltd. – a consulting company

Who is responsible to keep a property in a good state of repair?

The simple answer is both, the Landlord and the Tenant.

Why?

Maintaining a property in good physical condition significantly reduces the opportunity for events to occur which lead to insurance claims.  For instance:

Property Loss Reduction

• Water damage can occur easily and is expensive to repair; water leaks of any kind need to be repaired promptly to limit the damages
• Fire damage can be extensive and costly, requiring Tenants to keep the electrical loadings within a safe limits
• The lease requires that hazardous conditions, any damage, or deficiency, or defect be reported to the Landlord for correction
• The Tenant could be financially responsible for damages the Tenant caused or allowed to occur

Liability Loss Reduction

• The Occupiers Liability Act places the duty to take reasonable steps to keep the property safe for individuals entering the premises on both the Tenant and Landlord; the Act states:

“3(1) An occupier of premises owes a duty to take such care as in all circumstances of the care   is reasonable to see that persons entering on the premises and the property brought on the premises by those persons are reasonable safe while on the premises.
3(2) The duty of care provided for in subsection (1) applies whether the danger is caused by the condition of the premises or by an activity carried on on the premises.”

• The lease requires that hazardous conditions, any damage, or deficiency, or defect be reported to the Landlord for correction
• In a lawsuit by someone for injuries or property damage, commonly both the Tenant and Landlord are named as responsible parties (defendants)

Understanding tenant insurance requirements is important to both the tenant and the owner.  Make sure you know your responsibilities!

Review article 1 in this series on tenant insurance

Review article 2 in this series on tenant insurance

Review article 3 in this series on tenant insurance