loss of rent coverage Farmers

2 Replies

My insurance (Farmers) accepted claim for flood damage. Kitchen had to be completely redone which took 2.5 months. I reduced rent to account for unusable kitchen. Tenants left after 1 month in the repairs after paying reduced rent. Farmers paid the difference for the month tenants were there during repairs but not the remaining 1.5 months for which property was not habitable because of repairs. I was wondering if anybody can advise If I should call an attorney as Farmers (both adjuster and my broker) are not giving me any coherent explanation.

Read your specific policy that is handling the claim.  I do not believe flood insurance covers loss of rent. If it's under your landlord policy, not flood insurance, reimbursement of rent during repairs should be fully explained within your policy.  Rental reimbursement used to be optional in my policies, so I didn't have it.  Now, they have a specific rent reimbursement figure included in the premium, whether I want it or not.

Here is loss of rents text from my policy:
2. Loss of Rents. If a covered property loss makes that part of
the residence premises rented to others or held for rental by
you unfit to live in, we cover the loss of rents less any expense
that does not continue during the loss period. We pay for the
shortest time needed to (a) repair or replace the damaged
property, or (b) permanently relocate the rental premises,
but in no event for more than 12 months. Loss of rents due to
cancellation of a lease or agreement is not covered.

The tenants broke the lease because the place was inhabitable. I guess the last sentence gets the insurance off the hook. Comments?