Posted on: 03rd Dec, 2010 10:23 pm
I'm in the process of refinancing a single family rental property and my mortgage company is saying that my
policy does not cover loss of rents for 'any reason' (not just because of an 'insured loss') and needs to provide this feature with 6 months of gross rent amount.
My policy currently does provide for up to $35,000 of loss rents after an "insured loss".
So if I have fire damage (that is something the policy covers and is an "insured loss") The policy will help pay to repair the fire damage to the house and will also help pay for my loss rents up to $35,000 while the home is being repaired.
But the policy does not pay for loss rents if the tenant decides they are paying too much for my home and they decide to move out or if the tenant breaks my lease agreement.
Has anyone ever heard of what the bank is asking for and if so, do you know an insurance company who would provide it?
policy does not cover loss of rents for 'any reason' (not just because of an 'insured loss') and needs to provide this feature with 6 months of gross rent amount.
My policy currently does provide for up to $35,000 of loss rents after an "insured loss".
So if I have fire damage (that is something the policy covers and is an "insured loss") The policy will help pay to repair the fire damage to the house and will also help pay for my loss rents up to $35,000 while the home is being repaired.
But the policy does not pay for loss rents if the tenant decides they are paying too much for my home and they decide to move out or if the tenant breaks my lease agreement.
Has anyone ever heard of what the bank is asking for and if so, do you know an insurance company who would provide it?
Hi connordm,
The requirements regarding rent loss insurance may vary from one lender to another. It might be your lender's requirement that you should have an insurance policy which will cover loss of rents for 'any reason'. You can contact your lender and he will be able to let you know about an insurance company who will be able to give you such an insurance coverage.
Thanks
The requirements regarding rent loss insurance may vary from one lender to another. It might be your lender's requirement that you should have an insurance policy which will cover loss of rents for 'any reason'. You can contact your lender and he will be able to let you know about an insurance company who will be able to give you such an insurance coverage.
Thanks