Landlord insurance to cover loss of rent is on almost every policy and is almost never checked. The test is short: convert the percentage into pounds, compare it with the annual rent, compare the period with a realistic rebuild, and compare both with the mortgage that continues regardless. Three minutes of arithmetic answers it.
Convert the percentage into money
Most policies express loss of rent as a percentage of the buildings sum insured rather than as a cash figure. Multiply it out. On a property with a modest rebuild cost and a strong rent, the result can be less than a year's income, which is the case where the default silently fails.
Compare the period with a real rebuild
Twelve months is the usual default. A fire involving a loss adjuster, planning, a contractor and building control routinely takes longer, and longer again on a listed or terraced property. Extending to twenty four months usually costs very little and removes the part of the risk that hurts.
Compare both with the mortgage
The rent stopping is an income problem. The mortgage continuing is a cash problem, and it is the one that decides whether a landlord can hold the property through a rebuild. Sizing loss of rent against the mortgage payment rather than only against the rent is the practical version of this test.
What it will not do
It responds to the property being uninhabitable after an insured event, not to a tenant who stops paying and not to a void. If the concern is arrears rather than fire, the product is rent guarantee and this section will not help.
Questions people ask about landlord insurance to cover loss of rent
How do I know if my loss of rent cover is enough?
Convert the percentage of the buildings sum insured into pounds, compare with the annual rent and with the mortgage, and compare the period with a realistic rebuild.
Is twelve months long enough?
Often not for a serious fire, particularly on listed or terraced property. Twenty four months usually costs little more.
Does it cover a tenant who stops paying?
No. That is rent guarantee, a separate and heavily conditional product.
Does it cover rehousing the tenant?
Most policies include alternative accommodation where the tenancy requires it, frequently within the same limit.