What is loss of rents coverage on a Georgia landlord policy?

Loss of rents coverage replaces the rental income you lose when a covered event makes your Georgia rental property unlivable. If your tenant has to move out while repairs are made, this coverage steps in to pay the rent you would have collected.

It is a standard part of most landlord insurance policies. The key word is “covered.” The damage has to come from a peril your policy insures, such as a fire, a storm, or a burst pipe. If the property is empty because a tenant simply stopped paying or moved out by choice, loss of rents does not apply. That is a tenant problem, not an insurance loss.

The coverage kicks in when a covered loss makes the unit unrentable:

• A covered event damages the property and forces the tenant out.
• The home is repaired over a period of weeks or months.
• Your policy pays your lost rental income during that repair period, up to the policy limit.

For example, imagine a lightning strike sparks a fire in your Athens duplex that rents for $1,400 a month per unit. Repairs take five months and both units sit empty. Loss of rents coverage could replace up to $14,000 in income you would otherwise lose, keeping your mortgage payments on track.

Some policies cap this coverage at a dollar amount, others at a number of months, so the limit matters. To confirm whether your rental income limit fits your property, request a free coverage review and a licensed advisor will check your limits.