A landlord who rents out a house wants to insure the loss of rent if the home becomes uninhabitable after a covered fire. This need is met by:
Explanation
Fair Rental Value (Coverage D) reimburses a landlord for lost rental income when a covered peril makes the rented dwelling unfit to live in, limited to the time reasonably required to repair. Additional Living Expense (Coverage E) instead pays the extra costs an owner-occupant incurs to maintain a normal standard of living elsewhere. The two coverages address different insureds: a landlord versus a resident owner.
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Related questions on this topic
- A key difference between a Dwelling policy and a Homeowners policy is that the Dwelling policy:
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