Protecting Your Rental Property Investment with Loss of Income Coverage
Investing in rental properties can be a lucrative venture, but it’s not without its risks. One of the challenges landlords may face is the potential loss of rental income due to unforeseen events. To safeguard your investment, it’s crucial to understand and consider Loss of Rental Income Coverage.
What is Loss of Rental Income Coverage?
Loss of Rental Income Coverage is a type of insurance designed to protect landlords from financial loss when their rental property becomes uninhabitable or untenanted due to covered events – like a fire, for example. Just because the fire is out doesn’t mean the unit is habitable, nor would the units in close proximity be due to possible smoke damage. Repairs after a fire or smoke damage is very serious and repairs such as these could render the units vacant for some time. As such, accurately tracking your rental income is important, as is making your Broker aware of any changes to the occupancy (vacant or occupied) of your rental property. If you increase the rent at your rental buildings annually, consider making a point to update your Broker, too, so they can adjust your policy to reflect these changes.
Loss of Rental Income can be financially devastating for landlords who rely on that income to cover expenses like mortgage payments, property maintenance, and taxes. Even one month of lost rental income could significantly impact your bank account and your credit.
Having this coverage provides peace of mind, knowing that your investment is protected against unexpected events. Loss of Rental Income Coverage is a vital tool for landlords. It:
- Helps to protect their rental property investments.
- Provides financial security in times of adversity.
- Helps property owners weather the storm when their rental units are temporarily uninhabitable due to a covered event.
If you own or are considering investing in rental properties, make a point to discuss this insurance option with your Broker to determine the best coverage for your specific needs. By doing so, you can ensure that your real estate investments remain profitable and secure in the face of an unexpected challenge.
Some other coverages that landlords are advised to consider include Cyber, Equipment Breakdown, Student Rental specific insurance coverage programs, Sewer Back-up, Sump Pump Failure, Overland Water, Flood , Earthquake Coverage and more.
Call or come in today to meet with one of Commercial Insurance Brokers who can tailor a coverage package based on your specific needs.