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Loss of Rents Coverage: How Central New York Landlords Can Secure Rental Income During Property Repairs

October 6th, 2025

4 min read

By Daniel J. Middleton

Loss of Rents Coverage - How Central New York Landlords Can Secure Rental Income During Property Repairs

Imagine this scenario: A burst pipe floods your Syracuse duplex in the middle of winter, forcing your tenants to relocate while extensive water damage repairs take four months to complete. During this time, you're still responsible for your mortgage payments, property taxes, and other expenses—but you're not collecting rent.

For Central New York landlords, situations like this aren't just hypothetical. From severe winter storms to aging infrastructure in older properties, various factors can render a rental property temporarily uninhabitable. That's where Loss of Rents coverage becomes essential.

At Horan, we've helped numerous CNY landlords explore coverage options for their rental properties. We understand that your rental income often plays a crucial role in covering your property-related expenses. When that income disappears due to covered property damage, the financial impact can be significant.

This article will explain how Loss of Rents coverage works, when it applies, and why securing adequate coverage can provide financial stability during the repair process.

Understanding Loss of Rents Coverage in Your Landlord Policy

Loss of Rents coverage is a component of landlord insurance that may compensate you for lost rental income when your property becomes uninhabitable due to a covered peril.

Unlike homeowners insurance, which includes "Loss of Use" coverage for the policyholder's temporary living expenses, landlord policies include "Loss of Rents" coverage specifically designed to offer a degree of rental income protection.

This coverage addresses a fundamental challenge landlords face: property expenses continue even when rental income stops due to covered damage.

What Triggers Loss of Rents Coverage

For Loss of Rents coverage to apply, specific conditions must be met:

  1. Covered Peril Damage: The property damage must result from a peril covered by your landlord policy, such as fire, windstorm, vandalism, or water damage from burst pipes.
  2. Uninhabitable Condition: The damage must render the property uninhabitable, forcing tenants to relocate during repairs.
  3. Temporary Displacement: Coverage applies during the repair period until the property becomes habitable again.

For example, if a kitchen fire in your Baldwinsville rental creates smoke damage throughout the property, requiring tenants to move out for three months of repairs, Loss of Rents coverage may compensate you for those three months of lost rental income.

What Loss of Rents Coverage Includes and Excludes

Coverage Typically Includes:

  1. Fair Rental Value section (corrected): The policy's monthly coverage limit is typically based on the fair market rental value. The payout will be your actual loss of rental income, but that payout is capped at the policy's monthly limit. For example, if your property rents for $1,200 monthly, but the fair market value—and thus your policy's limit—is determined to be $1,000, your compensation will be limited to $1,000 per month. You cannot be compensated for more than the policy's limit, even if your actual loss is higher. On the other hand, if your property rents for $800 monthly and the fair market value and policy limit are set at $1,000, coverage would be limited to your actual loss of $800.
  2. Repair Period Income: Coverage for the time needed to complete repairs and restore habitability.
  3. Multiple Unit Properties: If you own a multi-unit property and only some units are affected, coverage applies to the uninhabitable units.

Important Exclusions:

  1. Tenant Non-Payment: Loss of Rents coverage does not apply when tenants can live in the property but simply stop paying rent.
  2. Normal Vacancy: Time between tenants when the property sits empty during normal turnover is not covered.
  3. Excluded Perils: Damage from floods, earthquakes, or other excluded perils won't trigger Loss of Rents coverage.
  4. Negligent Maintenance: If damage results from deferred maintenance or landlord negligence, coverage may be denied.
  5. Utility Failures: Neighborhood-wide power outages or utility failures without direct property damage typically aren't covered.

How Coverage Limits and Duration Work

Loss of Rents coverage operates within specific parameters that Central New York landlords should understand:

  1. Coverage Limits: Most policies provide coverage for 12 months, though some offer up to 24 months. However, specific policy terms can vary significantly, including waiting periods and sub-limits, making it essential to review your individual policy details with your insurance professional. The monthly limit typically matches or approximates your property's fair rental value.
  2. Lease Considerations: If your tenant's lease expires during the repair period, coverage may end with the lease term unless you can demonstrate the tenant intended to renew. This makes maintaining detailed lease records and documenting tenant renewal intentions particularly important for helping to protect your coverage.
  3. Restoration Timeline: Coverage ends when the property becomes habitable again, regardless of whether repairs are completely finished.

Central New York Considerations for Loss of Rents Coverage

Several factors specific to Central New York can impact Loss of Rents claims:

  1. Seasonal Challenges: Winter weather can complicate repairs and extend the time needed to restore habitability. Frozen pipes, heating system failures, and weather-related delays may extend the coverage period.
  2. Older Properties: Many CNY rental properties were built before 1950, potentially making repairs more complex and time-consuming. Consider whether your coverage limits account for extended repair timeframes.
  3. Local Market Conditions: Fair rental value determinations should reflect current Central New York market rates, which can vary significantly between urban Syracuse properties and rural areas.
  4. Contractor Availability: In smaller CNY communities, specialized contractors may have limited availability, potentially extending repair timeframes.

Determining Adequate Coverage Amounts

When evaluating Loss of Rents coverage for your Central New York property, consider these factors:

  1. Current Rental Income: Start with your actual monthly rental income as a baseline.
  2. Market Rate Analysis: Research comparable properties in your area to understand fair market rental values.
  3. Extended Repair Scenarios: Consider worst-case scenarios where repairs might take 12-18 months, especially for older properties.
  4. Multiple Income Streams: If you have a multi-unit property, calculate the potential loss for all units that could be affected simultaneously.

Many experienced CNY landlords opt for at least 12-24 months of coverage to account for extended repair scenarios, particularly given the challenges that Central New York winters can present.

Working with Your Insurance Carrier During a Claim

When filing a Loss of Rents claim, documentation becomes crucial:

  1. Immediate Notification: Contact your insurance agent or carrier as soon as damage makes the property uninhabitable.
  2. Document Everything: Photograph damage, keep repair estimates, and maintain records of tenant relocation.
  3. Lease Documentation: Provide copies of current leases and rent payment records.
  4. Fair Market Evidence: Be prepared to support rental value claims with comparable property data.
  5. Mitigation Efforts: Document steps taken to minimize the loss, such as expediting repairs or finding temporary housing for tenants.

Loss of Rents Coverage and Your Rental Income

As a Central New York landlord, your rental income likely represents a significant portion of your property's financial equation. Loss of Rents coverage helps bridge the gap between when covered damage occurs and when your property becomes habitable again.

The key is securing adequate coverage limits that reflect both your current rental income and potential extended repair scenarios common to our region. Working with an experienced insurance agency can help you evaluate your specific situation and explore coverage options that fit your needs and budget.

Don't let property damage derail your rental income when coverage options are available to help. Having proper Loss of Rents coverage in place provides financial stability during the repair process, allowing you to focus on restoring your property rather than worrying about lost income.

At Horan, we understand the unique challenges Central New York landlords face. Our experience with rental property insurance can help you explore coverage options that address your specific situation. Contact us to discuss how Loss of Rents coverage can fit into your overall landlord insurance strategy.

To explore landlord insurance options tailored to your Central New York property, click the Get a Quote button below. Our insurance professionals can help you understand how Loss of Rents coverage works within a comprehensive landlord policy.

If you'd like to continue learning about landlord insurance considerations, read "10 Insurance Considerations New Landlords Often Overlook When Purchasing Coverage."

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Daniel J. Middleton

Daniel is an accomplished content creator. He has been working in publishing for almost two decades. Horan Companies hired Daniel as its content manager in November 2022. The agency entrusted its messaging to him. Since then, Daniel has written insurance articles, service pages, PDF guides, and more. All in an effort to educate CNY readers. He's helping them understand the world of insurance so they can make informed decisions.