What type of losses does the Fair Rental Value cover?

The Fair Rental Value coverage is specifically designed to address losses related to property rental situations. This coverage is part of a standard homeowners insurance policy, and it applies when a rental property becomes uninhabitable due to a covered loss, such as a fire or severe storm damage.

When a property is unusable, the owner may lose rental income, and Fair Rental Value provides compensation for this loss of income. It calculates the value of the rental income that would have been received if the property were available for rent during the period it is uninhabitable. Therefore, the focus is on the economic impact related to rental income, distinguishing it from other forms of insurance coverage that address different types of risk, such as liability for injuries or losses from theft.