Fair rental income protection is one type of landlord protection. This can help replace lost rental payments if the property you are renting is temporarily uninhabitable after a covered claim. This protection is sometimes called fair rental value hedge. Depending on your insurer, this coverage may be available as standard with your home insurance or in addition to basic insurance.
WHAT DOES FAIR RENT INCOME COVERAGE DOES?
For example, suppose your tenants cannot live on your property if it is damaged by fire or smoke, for example. In such situations, fair rental income protection can help replace rental checks you would have received. This coverage is generally available for up to 12 months if needed.
Check your home insurance policy to find out if you have fair rental income protection and what situations it may cover. It's important to know that protecting rental income will usually not help if your tenant breaks a lease or your property is vacant between tenants.
WILL FAIR RENTAL INCOME COVER DAMAGE TO MY PROPERTY?
Fair rental income protection does not cover damage to your property. However, most home insurance policies include home insurance to cover damage to your home caused by certain hazards such as fire, lightning, and wind. This coverage can help pay for the structure to be repaired or replaced within the limits set out in your policy if it is damaged by a covered loss.
Read your landlord's insurance policy carefully to make sure you understand the situations it can and cannot cover.
A local representative can help you answer questions about home insurance so you can choose the policy that best meets your needs. Then you can rest assured that you have a safety net for your property and rental income in case the unexpected happens.