When a natural disaster strikes, those residents who rent an apartment, home, or commercial property in the affected area depend on their property insurance to protect them. From the BP Oil Spill to Hurricane Katrina, millions of Americans who rent were unable to live in the homes, apartments, or commercial property that they rented. Landlords face a serious risk in the event of a fire or any incident that compromises the property in which they rent.
Loss of rent insurance protects these landlords’ loss of rent. When a tenant is unable to occupy the place in which they rent, the landlord is unable to collect rent, thus making them unable to collect income following the natural disaster. In these cases, rent insurance loss is imperative to protecting landlords against an unforeseen event. There are a variety of incidents that rent loss insurance does and does not cover. As a landlord, it is imperative to understand the details involved in your insurance plan.
Arguello, Hope & Associates first party property insurance attorneys have spent years protecting landlords when the unthinkable happens. Damage claims in the United States amount to billions of dollars each and every year. Landlords are strongly encouraged to carry loss of rent insurance, however, there are cases where recovering this income is difficult. Our lost rental income lawyers are prepared to fight for the loss of rent income that you deserve. Combining years of experience, a vast knowledge of property insurance law, and passion to protect landlords, we are here for you.
To get started today, please complete a Free Case Review form on this page.
Lost Rental Income
Rent loss insurance is often mandatory with many mortgage companies. Once a rental property is purchased, landlords are either required to or encouraged to purchase lost rental insurance to protect them when a natural disaster or other incident strikes and leaves the property inhabitable. Unfortunately, those who have not purchased such insurance policy are not only left with costs to clean up the mess that is left, but also to cover the income that is no longer coming in from current tenants.
Naturally, tenants who are unable to live in their homes or apartments will not be paying rent. In these situations, the landlord depends on lost rental income through rent loss insurance. The following are some of the most common disasters or incidents covered under rent loss insurance:
- Falling Trees
As a general rule, the unit must be inhabitable for at least six months in order to be covered by rent loss insurance. Rent loss insurance not only covers lost rental income, but also any property damage that was suffered as a result of the disaster. More often than not, rent loss insurance is a portion of the complete insurance policy for landlords.
Calculating lost rental income involves the net operating loss. This number is reached by taking the landlord’s monthly rental income and then subtracting maintenance costs, taxes, mortgage payments, utilities expenses, and insurance premiums. Those landlords who are not required to purchase this type of insurance are subject to enormous losses due to lost rental income. Therefore, purchasing a policy and paying premiums is strongly encouraged for all property owners of apartment buildings, homes, and commercial buildings.
For more information, please complete a Free Case Review form on this page.
Attorneys Helping Landlords
At Arguello, Hope & Associates, we are dedicated to protecting the rights of landlords throughout the United States. When a hurricane, oil spill, or any other type of unforeseen event occurs, it is imperative to maintain legal representation in order to prevent further losses. Far too many landlords and property owners suffer at the hands of their insurance provider. These insurance companies will attempt to reduce the payment to cover your lost rental income. Do not get taken advantage of by these insurance providers.
Our experienced and compassionate property insurance attorneys have spent years fighting for the rights of landlords in cities throughout the nation. While our primary office is located in Houston, TX, our skilled lawyers are available to help wherever disaster strikes. We combine years of experience with a deep passion for the law to seek justice for landlords seeking lost rental income.
To learn more about your insurance policy options, complete a Free Case Review form on this page at your earliest convenience.