Must-have coverage for insurance property (3/3)

Must-have property insurance coverage: rental loss coverage

A fire insurance policy for leased property must include a number of crucial coverages and clauses to provide adequate protection. These include rental loss coverage: this provides compensation for loss of rental income due to damage from fire or other covered risks.

Coverage for loss of rental income

Rental loss coverage is an option that landlords can include in their fire insurance policies and provides compensation for loss of rental income due to damage to the leased property from fire or other covered risks.

With this coverage, the landlord is reimbursed for the income he would have earned if the leased property was not damaged until the property is rentable again.

compensation for for landlords

The idea behind this coverage is to compensate the landlord for the temporary reduction in income due to damage to the property. This is a useful coverage for landlords, especially those who expect a steady income from rentals, since damage from fire or other covered perils often results in temporary disuse of the property and therefore a loss of rental income.

Keep in mind that some insurers include restrictions on rental loss coverage, such as limited coverage time. It is important to carefully review the terms and conditions and ask any questions of your intermediary.

Want to know if your policy has (adequate) coverage for loss of rent? Contact one of our insurance experts! 

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