The loss of rents or sometimes called business expense coverage on a landlord policy is a coverage that is very inexpensive and but very important. This coverage kicks in when there has been a loss on a property and the tenant is forced to evacuate temporarily or worse yet permanently.
Depending on the type of property and the area this could range from $500 to multiple thousands of dollars a month. This is a must. My recommendation is to have enough coverage for a minimum of six months of rent in case something happens. Again, the coverage is so inexpensive, it’s definitely worth it.
I have a client right now that is in the exact scenario. The neighbor’s house caught on fire and in effect theirs caught on fire. There was enough damage where the tenant had to move out for a bit. So not only did the claim pay out $10,000 to fix the property, but is also reimbursing the landlord for rent lost. Really nice to have when you need it.
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