What is fair rental income protection?
Last updated: January 1
Fair rental income protection is a type of coverage in a landlord insurance policy. It may help replace lost rent payments if the property you are renting out is temporarily uninhabitable after a covered claim. This protection is sometimes referred to as fair rental value coverage. Depending on your insurer, this coverage may come standard with your landlord insurance policy or may be available as an add-on to a base policy.
What does fair rental income coverage do?
Suppose your tenants are unable to live in your property if it's damaged by fire or smoke, for instance. In situations like this, fair rental income protection may help replace the rent checks you would have received. This coverage is usually available for up to 12 months, if needed.
Check your landlord insurance policy to find out if you have fair rental income protection and what types of situations it may cover. It's important to know that rental income protection generally will not help if your tenant breaks a lease or your property is unoccupied between tenants.
Does fair rental income cover the damage to my property?
Fair rental income protection doesn't cover damage to your property. However, most landlord insurance policies include dwelling coverage to help cover damage to the residence caused by certain perils, such as fire, lightning and wind. This coverage may help pay to repair or replace the structure — up to the limits stated in your policy — if it is damaged by a covered loss.
Be sure to read your landlord insurance policy carefully to make sure you understand what types of situations it may and may not cover.
A local agent can help answer any questions about landlord insurance so you can choose the policy that fits your needs. Then, you can move forward with the peace of mind that comes with knowing you have a safety net in place for your property and rental income should the unexpected occur.