Loss of rent insurance
A rent insurance provides financial compensation for loss of rent due to damaged premises. Owners of real estate who rent out their properties commercially or privately are usually urgently dependent on the rental income. With this rental income, some often pay off their real estate, others in turn need this income to secure their livelihood. If the owner loses this rental income, it can lead to major financial problems and in the case of longer rental losses, this can even mean bankruptcy or the sale of the property. Rent loss insurance is a good way of protecting yourself against this.
Loss of rent insurance benefits
In the event of loss of rent or loss of use, the rental loss insurance not only covers the lost income, but also the ancillary costs such as property tax or garbage collection fees. In addition to the risks associated with rented properties, the rental loss insurance also covers properties used by the owner himself. If the owner can no longer live in or rent out his house or apartment himself due to damage, the rental loss insurance covers the costs for a replacement apartment or loss of rent until the damage to the property has been repaired and can be inhabited again. However, the period for this is contractually agreed in advance. This also applies to rent reductions. In this case, the insurance company pays the difference in the rent lost due to the reduction.
Insured damage
The rental loss insurance covers rental losses caused by property damage to the building. This includes, for example, damage caused by fire, tap water, hail or storm, but also damage caused by lightning strikes and explosions .
Uninsured damage
The insurance does not cover damage caused by war, nuclear energy, civil unrest, earthquakes or the intent of the policyholder. In addition, damage such as useful heat damage, scorching damage, storm surge damage and damage caused by rain, hail, snow and dirt penetrating through openings that are not properly closed are not included in the insurance.
Important information about the insurance contract
Loss of rent insurance is often offered as a supplement to building insurance . When taking out the insurance, the building must be precisely described in the insurance contract. The sum insured is variable. In the case of rented rooms, it is based on the gross annual rent and, in the case of rooms used by the owner, on the local rental price . In addition, the sum insured also depends on the agreed period in the insured event. As a rule, rental loss insurance can be taken out for a period of 12 months. However, an extension to 24 months is possible against a premium surcharge.