What does the Fair Rental Value coverage provide in a property policy?

Fair Rental Value coverage is designed to provide reimbursement for lost rental income due to a covered loss that temporarily makes a rental property uninhabitable. This type of coverage is essential for landlords or property owners who rely on rental income to cover expenses such as mortgage payments, property taxes, or maintenance costs. If a property experiences damage from a covered peril, such as fire or severe weather, Fair Rental Value coverage compensates the owner for the income they would have earned during the period of restoration. This ensures that landlords can maintain their financial stability while their property is being repaired, effectively protecting their investment and cash flow.

This coverage does not handle personal property, protect the structural aspect of the property directly, or provide legal liability coverage, which focus on different aspects of insurance needs.