Start with the cause of loss
The property damage must generally result from a cause of loss covered by the policy before related rental-income coverage applies. A loss excluded by the property form can also prevent the associated rental-income claim.
Choose a limit deliberately
Estimate realistic rental income and consider how long significant repairs could take. The declarations and form determine the available limit and restoration period. Owners of multiple units should consider whether one event could affect several units at once.
Keep rental documentation
Leases, rent rolls, payment histories, management records and repair timelines can help establish expected rental income and the duration of a covered interruption. Documentation is especially important for multifamily or multiple-property schedules.
Loss of rents is not tenant default coverage
A tenant simply failing to pay rent is not the same as rental income lost because covered physical damage makes the property uninhabitable. Read the policy definition and exclusions before assuming a particular income interruption is insured.
Insuring a Texas rental property?
Insurance Plus can review available landlord and dwelling policies, including loss-of-rents options for qualifying rental properties.