Loss of use/rent coverage DENIED due to turnover
There was a fire in a Chicago condo that I have been using as a rental unit for 5 years. Insurance is refusing to pay for "loss of use" since I did not have a tenant in place during the actual loss.
Is this common practice? Do you have any advice on how I might challenge their decision?
Any help would be appreciated.
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Jason Bott
#2 Insurance Contributor
Pro Member
#2 Insurance Contributor
- Insurance Agent
- Nationwide
@David Green yes, this is common.
If the repair will take extra long, 90-120 days, you may be able to argue that you could have placed a tenant during the time it is down durning repair.
Show annual receipts from the last 24-36 months and ask to be compensated on the average monthly rate over those last 24-36 months on the unit. Maybe you can get a % of the rents.