Am I covered for loss of rents?
You are covered for your loss of rental income following physical property damage. For example, if your rental home cannot be lived in because of earthquake damage you will be paid your lost rental income for up to 12 months, or the loss of rent sum insured (whichever comes first).
The policy automatically includes $20,000 of cover, which is suitable for rents of up to $385 per week. The loss of rent sum insured can be increased to $40,000 ($385 – $770 per week) or $80,000 ($770 – $1538 per week).
The initio policy also provides cover for loss of rent where there is no property damage. This cover applies when your tenant abandons the property or you have to evict them:
- Loss of rent due to non-payment of rent because of prevention of access or failure of public facilities, up to 6 weeks’ rent.
- Loss of rent due to the tenant vacating the property without notice, up to 6 weeks’ rent.
- Loss of rent due to eviction for non-payment of rent, up to 6 weeks’ rent.