Definition
Loss of rent covers landlord income when damage forces a tenant to vacate. It's critical for rental property cash flow protection.
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Loss of rent (also called loss of occupancy) covers rent if tenant forced out due to covered perils. Typically covers 12+ months. Tenant responsibility to pay rent usually continues despite damage. Insurance compensates landlord if tenancy stops. Critical for rental property cash flow. Limits typically 20-30% of property value. Growing importance with property damage risks. Professional property management important for claims.
Pro Tip
Verify adequate loss of rent coverage limits in your landlord policy.
Example
Loss of rent coverage compensated for 6 months when fire damage forced tenant relocation.