Rental Income Insurance: Don’t Run Out

SCM: Loss of Rental Income Insurance Policy

Most “off the shelf” commercial property polices only provide coverage for 12 months loss of rental income when a property is shut down due to a covered claim. Be careful! In many cases, this is not enough coverage. You should consider having enough rental income insurance to extend your coverage period. Issues can delay repairs when a commercial property suffers a significant loss from events like fires, explosions or windstorms. In addition to making necessary repairs, construction delays can occur due to:

  • Delays from plan approvals, permitting issues, and design changes
  • Weather, materials availability, and code updates
  • Complex construction techniques


Our Recommendations for Rental Income Insurance

In the best case, your rental income insurance needs to be sufficient to replace your income, operating expenses for the entire period of restoration, and additional time for leasing the property again. We recommend choosing a loss of rental income insurance policy that provides 24 months coverage. It’s relatively inexpensive, and you won’t need to worry about project delays that could damage your expected cash flow.


Have Questions about Rental Income Insurance?

If you have questions about your commercial property insurance coverage, please contact us. We’d be glad to help you.


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