Rental Income Insurance

[Mark Scarola]

I don't have any rentals as of yet, but it's an area that I'm hoping to get into. I was reading an article (from the REI Expo magazine, if you're curious) and it mentioned "coverage against rental income interruption" and "tenant-paid rental protection plans. They didn't use the word insurance, but it sounded like insurance for landlords to protect against empty units.

I've never heard of this before and was wondering if anyone has experience with it. If so, what do you think of it? Are the terms and cost reasonable? Does it pay for the time between tenants or only if say a tenant signs a one-year lease and then bails after month four?

[Ali Boone]

No Mark I know what you are talking about. It's different than anything that is included in the property's insurance. You pay a (small) annual fee and it actually does cover rental income interruption and eviction costs and all that. However, the main company who has offered that for the last couple years and the only one I know who has had it, just lost their backer and are no longer offering it. I had it on one of my properties and once my policy expires on that one, it's over. Not sure their plans to get back in the game with it, but for now I think it's not going to be available any longer. Unless you know of another company who offers it, let me know because I'd be interested in it.