I’m wondering how insurance deals with rental income lost from a firestorm. I know that insurance companies were paying homeowners loss of use compensation from the fires, but wondering how rental properties were compensated (if at all).
It depends on whether a lender will require rental income protection (and I can only speak to my own situation, as that I am not an authority on insurance and its intricacies). I was only required to have income protection on my commercial/residential property. From my understanding of the policy, yes, the insurance would cover certain expenses if a disaster (such as a fire) destroyed the property.
My SFRs do not have income protection, but the insurance does cover the lender in case of a fire…
(I’d have to re-read the insurance policy that I have, I dont’ have all the details in mind).
