Loss of Rent insurance, also called “Loss of Use” coverage, protects you in the event your property is no longer a viable income stream due to damage or loss. If the rental property is damaged in a storm, for example, and is no longer inhabitable for tenants, then Loss of Rent coverage can compensate you for fair rental value of the property while it’s being repaired. This coverage is subject to the terms and limits in your policy, so you’ll need to check with your insurance agent to ensure you have it and how much coverage is provided.
Do I need Liability Insurance for My Rental Property?
Yes, and the good news is that liability insurance is included in your landlord insurance coverage. You may want to consider additional protection through an Umbrella Insurance policy, which provides extra liability coverage that can help protect you from liability costs that exceed your primary coverage as well as help cover defense costs, attorney fees and other charges associated with lawsuits.