Loss of rent FAQs for landlord insurance

Does initio offer cover for loss of rent?

Yes – our landlord insurance includes loss of rent protection in these situations:

  • Your rental becomes uninhabitable due to sudden, accidental damage covered by the policy (like fire or flooding)
  • Your tenant is evicted for non-payment, or vacates the property without notice 

We’ll pay up to 12 months’ rent, capped at your selected loss of rent limit.

Learn more about how loss of rent works

What does loss of rent cover?

Loss of rent cover helps protect your rental income when your tenants can’t (or won’t) pay rent, or when your property becomes unlivable. Here’s a breakdown of how it works under initio’s landlord insurance:

You’re covered for:

  • Uninhabitable home: If the property can’t be lived in due to insured damage (e.g. fire, flood, meth contamination), we cover up to 12 months’ rent, up to the limit shown on your policy.
  • Tenant stops paying rent: If your tenant is evicted for non-payment or vacates without notice, you’re covered for up to 6 weeks’ rent.
  • Abandonment: If your tenant disappears mid-tenancy, we’ll cover up to 6 weeks’ rent (less any rent paid in advance).
  • Access or utility issues: If your tenant can legally stop paying rent due to loss of access or failure of public utilities, you’re covered for up to 6 weeks’ rent.
  • Meth contamination: If your property is contaminated during a tenancy and you’re covered under the meth benefit, we’ll also cover up to 12 months’ rent, based on estimated repair time.
  • Tenant damage: If the home becomes uninhabitable due to intentional damage, theft or vandalism by a tenant, loss of rent may also apply under the standard 12-month cap.

If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific details – just remember to always double-check the results!

Learn more about how loss of rent works, alternatively, read the full policy wordings.

Why does loss of rent cover matter?

If you rely on rent to cover mortgage payments or other bills, this protection is essential. It gives you breathing room while your property is repaired or re-tenanted.

Tip: To claim under most loss of rent scenarios, you’ll need to meet your landlord obligations, including regular inspections and proper tenant vetting.

What happens if my rental property becomes uninhabitable due to a natural disaster? 

If your rental property becomes uninhabitable due to a natural disaster, initio’s landlord insurance covers loss of rent. This means if your property is damaged and tenants have to move out, you can claim for the rental income you would have otherwise received while repairs are being made. The standard cover includes $20,000 loss of rent, with options to increase this amount. Payments continue until repairs are completed and the property is rentable again, up to the cover limit or 12 months, whichever comes first.

 Learn more about loss of rent cover through initio.

Do I have to include loss of rent and landlord contents cover with initio? 

Yes. Loss of rent and landlord contents are standard features of initio’s landlord insurance, and they can’t be removed from the policy. Every policy includes at least $20,000 loss of rent cover (with the option to increase this limit) and $20,000 landlord contents cover. The landlord contents cover is a built-in minimum and can’t be reduced below this amount. These benefits are included to protect you against some of the most common risks landlords face. Read the policy wordings here.

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