Loss of rent insurance
No matter how careful you are, things can go wrong.
If your property is uninhabitable following insured damage (such as a fire or flood), you have flexible options to provide your tenant with alternative accommodation. If your tenant cancels the agreement, we will cover the lost rent until the property is inhabited again for up to 12 months.
Why choose Hiscox for loss of rent insurance?
1
High level of cover
We offer a high level of cover as standard, helping you stay protected against the unexpected.
2
Tenant protection
Loss of rent insurance can cover the cost of providing tenants with alternative accommodation during repairs. If your tenants refuse this accommodation, our policy can still compensate you for lost rental income up to 40% of your buildings sum insured. Please check relevant policy wordings for limits.
3
Income protection
If your property cannot be inhabited due to reasons included in your policy, we can cover the loss of your rental income for up to 12 months during repairs.
What is loss of rent insurance?
Loss of rent insurance can protect landlords from losing income if their rental property becomes uninhabitable due to an insured event, such as fire, flood, or theft.
This covers the income lost while the property is repaired and restored to habitable condition, ensuring landlords receive revenue despite disruptions.
For example, if your property suffers significant water damage through a leaking roof in a storm, loss of rent insurance could cover your rental income for a period while repairs take place.
This type of cover can be particularly valuable for landlords who rely on rental income to cover mortgage payments and professional landlords whose property is their primary source of revenue.
What’s covered in loss of rent insurance?
Loss of rent insurance offers two types of protection:
- It could cover the tenant’s relocation to alternative accommodation while repairs take place.
- The tenant can choose to end the tenancy agreement. In this case, the insurance covers the landlord’s loss of rental income until repairs are completed (up to 12 months).
Loss of rent insurance is automatically added as standard with Hiscox landlord insurance.
Hiscox provides loss of rent cover for up to 40% of the Building Sum Insured (BSI).
For example, if your Building Sum Insured is £100,000, you would have up to £40,000 (40%) of cover.
If you charge £15,000 rent annually, and flood damage renders your property uninhabitable for 12 months while repairs take place, Hiscox could cover the entire £15,000 as it is well within your £40,000 limit.
What’s not covered in loss of rent insurance?
Hiscox loss of rent insurance does not cover the following:
- Non-payment of rent – if a tenant fails or refuses to pay rent while the property is habitable
- Lease breaks – if a tenant breaks the lease, moving out early
- Longer than a year – properties that are uninhabitable for more than 12 months
- Communicable diseases – except in the case of specified diseases, including any fear or threat of such incidents or any action taken in controlling, preventing, suppressing, or responding to such incident
- Damage caused by any deliberate or malicious act by tenants – unless you ensure that a thorough inspection of the insured premises is carried out and recorded at least every six months (or as frequently as the tenancy agreement allows).
Please refer to the policy documents for the full details of inclusions and exclusions of this cover. Policy documents are available when purchasing online. You can also contact our customer services team for more information.
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Start your quoteLandlord loss of rent insurance: FAQs
How can I pay for landlord loss of rent insurance?
Loss of rental income cover is included in Hiscox buildings insurance for landlords. You can pay for Hiscox landlords insurance by direct debit monthly, on your preferred day of the month.
You can cancel your policy at any time with no administrative fees.
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