For landlords who rely on rental income as a steady source of earnings, a loss-of-rent cover is a must-buy before letting out their property. It safeguards the returns on investment by compensating them for the loss of rent when the property is under repair up to the limits defined under the policy.
Given the uncertainties in property management where natural disasters such as floods and other incidents such as fire and structural damage can disrupt tenancy, this cover provides financial stability during repair.
Most home insurance policies offer this cover as an optional add-on, allowing landlords to customise their insurance according to their needs without purchasing a separate policy. It also ensures that all related coverages are managed under a single policy, simplifying claims and policy management.
Gurdeep Singh Batra, head, Property UW (E&S), Risk Engg, Global Accounts, Bajaj Allianz General Insurance, says loss-of-rent cover is beneficial for landlords as it ensures that they are indemnified for the loss of rentals if the property becomes uninhabitable due to unforeseen circumstances like natural disasters, fires, or other significant damage covered under the policy. “It helps mitigate financial risks associated with property damage and ensures the property owner can maintain financial stability during such disruptions.”
