Now I just send the 1098 when the contract is paid in full so that the buyer can claim the full interest the year they pay off.

Regular smoke detector does not pick up the smoke.

For anything outside of a landlord tenant matter, how will the structure stop someone from filing a claim regardless of whether there is or is not merit?  

But claiming it "works" is a HUGE stretch.It is like saying "if it doesn't;t work, then you didn;t do it enough".

The legal bar for a criminal transaction or claiming the person was unable to enter into a contract are not necessarily equivalent to the bar for those who need guidance I.e. the elderly.

We ended up filing a claim with our insurance.

Furthermore the attorney said I'd have to cover the tenants lawyer cost if I brought them to small claims. 

Do you perform regular preventative maintenance to avoid emergencies or are you more reactive?

You should have someone local who can drive by to check on the property, respond to emergencies, conduct regular inspections, etc.

I'm reviewing my rental property insurance after having gone through issues with the first ever claim on my current policy, which we're finding out has poor claims service and lacks ordinance or law coverage.