Fair Rental Value Coverage
What is Fair Rental Value Coverage?
Fair rental value coverage, also known as loss of rents coverage, is insurance that protects property owners against the loss of rental income due to a covered peril that renders the property uninhabitable. This policy feature compensates the insured for the actual rental income they would have received if the property had not been rendered unusable. Fair rental value coverage helps property owners mitigate financial losses by providing them with the rental income they would have earned during the period of restoration or repair. It is commonly included in property insurance policies and is particularly important for landlords who rely on rental income as a source of revenue.
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