Being a landlord in New York City can be a lot of work. You’ve got to worry about repairs, maintenance, and keeping your tenants happy. But one thing you don’t have to worry about is unexpectedly losing the rental income you rely on — that’s where rental loss insurance comes in.
What is Rental Loss Insurance?
As the name suggests, rental loss insurance can help cover your lost rent if your property becomes uninhabitable due to a covered event. Rental loss insurance is sometimes referred to by other names, such as loss of rents coverage or rent guarantee insurance.
As the name suggests, rental loss insurance can help cover your lost rent if your property becomes uninhabitable due to a covered event. Rental loss insurance is sometimes referred to by other names, such as loss of rents coverage or rent guarantee insurance.
What Does Loss of Rent Insurance Cover?
Rental loss insurance can be a crucial safety net for landlords in a number of situations, including:
- If your property is destroyed or damaged by a covered event: Imagine this: a fire breaks out in one of your rental units due to an electrical malfunction. The damage is extensive, rendering the unit completely uninhabitable. Rental loss insurance can cover the lost rental income during the repair and restoration period — which could be months.
- If you need to evict a tenant for non-payment of rent: It can be difficult and time-consuming to evict a tenant who is not paying rent. This is especially true in NYC, where the tenant eviction process is notoriously complex. Rental loss insurance can help cover the cost, including legal fees and court costs.
- If you need to make repairs or renovations after a tenant damages your property: Unexpected repairs or renovations can be a major financial burden for landlords, especially if you have multiple properties. Rental loss insurance provides a security blanket so you don’t have to dip into your own pocket.
When Do Landlords Need Additional Rental Loss Coverage?
In New York, landlords are not legally required to carry loss of rent insurance.
However, it’s wise to pay close attention to the rental loss coverage included in your landlord insurance policy to protect your financial interests. Depending on factors like the size and value of your rental property, your location, and your risk tolerance, you may want to consider getting additional protection beyond what the standard landlord insurance policy offers.
Ensuring your insurance policy includes adequate coverage for loss of rental income is a good idea for any landlord, but it’s especially important for landlords who:
- Own multiple properties.
- Have tenants who pay rent on a monthly basis.
- Live in a high-risk area for natural disasters.
- Have tenants who are not financially stable.
The best way to determine whether additional rental loss coverage is right for you is to talk to your insurance agent. They can help you assess your specific needs and recommend the right coverage for your rental property.
How HCP Helps New York Landlords
We hope this blog post has given you a better understanding of rental loss insurance and why it’s an important investment for landlords in New York. If you have any questions, please don’t hesitate to contact us. We’re NYC landlords ourselves and have been working with landlords in New York for over 100 years. We understand the unique challenges and risks you face and are committed to protecting your rental property investment like it’s our very own.
