Loss of Rental Income Insurance

Loss of Rental Income for Short-Term Rentals

Your rental only earns when it's bookable. If a fire, burst pipe, or storm makes the property uninhabitable, the repair bill is only half the problem — every cancelled reservation is lost revenue you can't get back. Loss of rental income coverage replaces that income while your property is out of service.

What It Covers

• Lost booking revenue during the repair period after a covered loss
• Fair rental value — the income the property would have earned
• Continuing expenses like mortgage, utilities, and management fees
• Extended period of restoration where available, to cover the ramp back up

How It's Different From a Refund

When you cancel a guest because of damage, you refund their money — that's a loss to you, not a guest problem. Loss of rental income replaces the *income you would have earned* during the time the property can't be booked. It's protecting your cash flow, not the guest's deposit.

Calculating Your Limit

Your limit should reflect your actual booking revenue, including seasonal peaks. A beach house that earns most of its income in summer needs a limit (and period) that accounts for losing the high season. We help you set a realistic limit based on your real numbers — not a generic guess.

Covered Perils Matter

Loss of rental income responds when the cause of the shutdown is a covered peril under your property policy (fire, water, storm, etc.). It generally does not cover a booking slump or a market downturn. We make sure your underlying property coverage and the income coverage line up so there's no surprise gap.

Pair It With Property & Contents

Loss of rental income works hand-in-hand with property & contents: one pays to fix the building and furnishings, the other replaces the income you lose while that happens.