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) – We’ll pay up to 12 months’ rent, capped at your selected loss of rent limit.
- Your tenant is evicted for non-payment, or vacates the property without notice – We’ll pay loss of rents following the eviction, or until you find a new tenant for up to 6 weeks (excludes overdue rents prior to the eviction).
Learn more about how loss of rent works
What does loss of rent cover?
Loss of rent cover helps protect your rental income. 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.
- Loss of rent following eviction of the tenant for non-payment of rent during the period of cover. We will pay for any event up to 6 weeks’ rent, less any amount recoverable by you from rent paid in advance
- Abandonment: Loss of rent following the tenant vacating the home without giving the required notice during the period of cover. We will pay for any event up to 6 weeks’ rent, less any amount recoverable by you from 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 reduced or 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. These benefits are included to protect you against some of the most common risks landlords face. Read the policy wordings here.
Ready to protect your rental property? Get a quote in seconds and cover in minutes
Related articles
- Guide to landlord insurance
- What does landlord insurance cover?
- Differences between content cover options
- Renting out part of your home short-term?
- Thinking about becoming a landlord and renting out your home?
- Does NZ still have a meth problem?
