Is rent loss insurance included in a normal tenant occupied insurance policy?
How do you know what IS covered under an insurance policy such as rent loss, landscaping replacement, tree removal etc?
I have a home in Galveston that will be without rent for many months. I see many items that are excluded such as Hurricane but there is not an explanation of what is included in the coverages on my policy statement.
A good insurance agent is a must. He includes all my units (apts, homes, duplexes, etc) under one business policy. He said that the liability portion is where I save money at. He always includes loss of rents. I also carry a $10,000 deductible–basically self-insuring that amount! It really saves alot.
LandmarxProps - I recently talked with 4 insurance agents and in all cases their landlord policies included 'loss of rents". However you need to be careful, they did not cover your losses if you can’t rent the place. It covers your losses only if you have a claim and as a result you lose your rental income.
Not sure what you mean by “policy statement”. Your policy must have what is covered and what is not covered. If you can’t see it there, is probably because you are not looking at the actual policy. I suggest you contact your insurance agent or company and ask for a copy of the policy. And to be honest, you should always review the policy before you sign the policy.
good luck!
LandmarxProps,
As j1dias mentioned, you need to be sure that you policy includes “loss of rents”. This coverage is not available with all policy types. As was also mentioned, this loss must be due to a covered loss. You property policy will not pay out for loss or rents when you have an uncovered event that forces your tenants from your property.
You should really sit down with your insurance agent. It is often best to use an independent agent who has access to many markets. Find a local REI club. There is almost always an insurance agent in the group.
Good luck.
roblaw
I used to get it on all my properties. I checked into it. I talked to insurance agents and other investors. What I found out is that the applications that triggered a payoff were so rare that it virtually never gets paid out. It also does not pay you monthly it is just a lump at the end of the catastrophe.