Loss of Rent Cover
Should the property that you are renting out to someone be so badly damaged perhaps due to a fire, storm or flood resulting in the tenants having to move out, then either loss of rent or alternative accommodation insurance may provide you with suitable cover for either of these risks.
Loss of rent insurance
Should the tenant need to move out of the damaged property into the likes of a family member’s home and stopped paying the rent to you, then loss of rent insurance would provide you with financial recompenses whilst the property remains uninhabited. The period that the policy may pay out for may vary between different insurance companies but could be for anything between 12 to 36 months so it is worth checking the policy details in this respect as well as the amount of cover provided.
It should be noted that loss of rent insurance does not provide cover should the tenant be unable, for financial reasons, to make their rental payments.
Alternative accommodation insurance
If the tenant has had to move into alternative accommodation whilst the property that they had been renting from you is repaired for which they have had to pay rent, then they may seek financial recompense from you for this expense. However, if they do so, they will still have to continue to pay the rent on your property. Alternative accommodation insurance would cover this situation whilst your property is not habitable for a specific period of time.
Obviously, in such a situation, you would not be able to claim for loss of rent.
Loss of rent insurance or alternative accommodation insurance is often included within a landlord insurance policy.