Many landlord insurance policies include coverage for loss of rental income, but not all do. In such instances, however, you can purchase loss of rental income coverage as a policy add-on. This type of coverage can play a vital role in keeping you afloat financially in the event of one or more unfortunate incidents.

Loss of Rental Coverage: What Does It Cover?

Loss of rental coverage compensates Bourbonnais, IL landlords for lost rent due to covered perils. If your home is damaged by a covered natural disaster, for example, your insurance company will compensate you for the rent your tenants aren’t paying while the house is being repaired. This type of coverage can also cover the costs of evicting a tenant who is refusing to pay rent and may even compensate you for the cost of fixing damage your tenant did to the home while the eviction process played out in court.

However, loss of rental coverage doesn’t cover a tenant’s non-payment of rent while your property is still habitable. It also doesn’t cover lost rent if your tenant decides to break his or her lease, or make up for lost rent while your home or apartment is vacant. Furthermore, insurance won’t cover costs such as property taxes and utilities even if you receive rent compensation for a covered peril.

Contact George Ryan Jr. Insurance Group, Inc. for More Information on Rental Property Coverage

Renting out properties can be a great way for any Bourbonnais, IL resident to earn passive income. However, it’s not without its risks, which is why proper insurance coverage is a must to reduce risk and avoid unmanageable expenses. Call our team at George Ryan Jr. Insurance Group, Inc. to find out more about landlord insurance and other forms of coverage that can protect your properties from a range of perils.