Landlord insurance with rent protection

[Mike Parker]

As it relates to landlord insurance, I've heard there are policies that can include "rent protection" to cover the property owner.  Not only covering the rental income in cases where the dwelling is uninhabitable but more so if the tenant defaults and stops paying rent and has to be evicted. Is this a real thing or just an urban legend? Many of the major insurance carriers that I've called say they have never heard of such a policy.

[John Mocker]

Mike,

Under most Insurance policies for rented dwelling, apartment buildings, etc. that include Business Income or Loss of Rents coverage, it requires a covered loss.  If there was a Fire, Windstorm, Etc. that is covered by the policy and it results in a loss of Rental income, that coverage would be triggered.  I have not heard of a Personal or Business policy that covers loss of rent due to a tenant chosing not to pay.  I have read about stand alone policies that promise to pay if the tenant defaults on rental payments but I have not ever written that type of coverage.