Dwelling PolicyQuestion 74 of 158

A landlord's tenant must move out for three months while fire damage to the rented house is repaired. Which DP coverage reimburses the landlord for the rent the tenant would have paid?

a.Coverage B — Other Structures
b.Coverage C — Personal Property
c.Coverage E — Additional Living Expense
d.Coverage D — Fair Rental Value

Explanation

Coverage D, Fair Rental Value, reimburses the landlord for lost rental income when a covered loss makes the rented dwelling unfit to live in, for the time reasonably required to repair or replace it. Coverage E, Additional Living Expense, pays extra costs the named insured incurs when displaced from a dwelling they themselves occupy — not the landlord's lost rent. Coverages B and C apply to other structures and personal property, not rental income.

Law Reference: ISO Dwelling forms — Coverage D Fair Rental Value

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