Rental Income Insurance

commercial property insurance
commercial property insurance
Feb 21 2018 2 min read

If you own a home, commercial property or a multi unit building that you rent out to tenants, you can be covered in the event of an unexpected loss of rental income.

Rental income insurance is a key component of most landlord insurance polices.

What is loss of rental income insurance?

Rental income insurance is a type of coverage within a landlord insurance policy that can be applied to either a residential or commercial property. It can help replace lost rent income if the property is temporarily uninhabitable after a claim. This coverage is sometimes referred to as fair rental value coverage.


    We serve the Haldimand and Niagara regions in Ontario.
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    Commercial loss of rents coverage

    If you are in the commercial real estate business, one source of your income is most likely the rent you collect from your tenants. When a loss occurs, your tenants might not be able to occupy their rented space while you are having it repaired or rebuilt. If you own many properties or one single building, regardless if you have a mortgage or not, you can protect yourself by purchasing a specific type of business insurance – Rental Income.

    Ask yourself in either situation – Can I afford to not have that revenue coming in? How will I cover the mortgage, or if you do not have one, how will I cover whatever other commitments I have that those rents contribute toward? Get a quote for rental property insurance.

    Residential loss of rents coverage

    If your property is a residential risk, your tenant could be forced to move out and find a new place to live while the repairs to your property are completed. When you own a commercial building with business tenants, it is quite possible they may have to permanently or temporarily re-locate due to damage by a covered loss to your building.

    Including rental income in your commercial insurance policy will protect you and usually pay up to 12 months worth of rent that you would have received from those lost tenants. You may often have the option to purchase up to as much as 24 or 36 months worth of rental income coverage.

    Do you own an empty house? Learn about how what to do when a property becomes vacant.

    Now considering the reverse side, the opposite can also occur to protect the tenant(s). In some instances, you as the landlord, could require your tenant(s), within their lease agreement, to cover the Rental Income on their insurance policy and name you as the loss payee for those rents, should a loss occur.

    Ultimately, the coverage is designed to protect those parties with a vested interest and should not be overlooked.

    Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.

    Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.


    Article Written by George Nikolaidis

    Erie Mutual Insurance Manager – Underwriting and Loss Prevention


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