Calculate how much loss of rent coverage you need as a landlord. Estimate the rental income you could lose during repairs after a covered loss.
When a covered loss (fire, storm, burst pipe) makes your rental property uninhabitable, you lose rental income during the repair period. Loss of rent coverage — also called "fair rental value" coverage — reimburses you for the rental income you would have collected while the property is being repaired.
Repair timelines vary dramatically: a minor water damage claim might take 2–4 weeks, while a major fire can require 6–12 months of reconstruction. Without loss of rent coverage, you're paying the mortgage on a property generating zero income.
This calculator helps you estimate the right amount of loss of rent coverage based on your rental income and potential repair timelines. These are educational estimates — actual coverage needs depend on property and risk specifics. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
Losing rental income while still paying the mortgage, taxes, and insurance on an uninhabitable property is devastating. This calculator helps you set the right loss of rent coverage limit so your investment returns are protected during covered repairs. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Monthly Income Loss = Monthly Rent Total Income Loss = Monthly Rent × Repair Months Ongoing Costs During Vacancy = Monthly Expenses × Repair Months Recommended Coverage = Total Income Loss + Buffer (20%)
Result: $14,400 recommended loss of rent coverage
Monthly rent of $2,000 × 6 months = $12,000 in lost rent. With a 20% buffer for unexpected delays: $12,000 × 1.2 = $14,400 recommended coverage. During that time, you'd also continue paying $1,500/month in expenses ($9,000 total), making the coverage even more critical.
Minor water damage: 2–4 weeks. Moderate water damage with mold: 2–4 months. Kitchen/bath fire: 3–6 months. Major structural fire: 6–12 months. Storm damage (roof replacement): 1–3 months. These timelines assume contractors are available — after major disasters, timelines can double.
The mortgage doesn't stop when the rent does. Budget for at least 6 months of lost rent in your coverage limit, even if you think a major repair would only take 3–4 months. Contractor delays, permit issues, and supply chain problems routinely extend timelines.
If you own multiple rental properties, calculate loss of rent coverage for each property individually. A fire at your highest-rent property could cost $18,000–$36,000 in lost income over 6–12 months.
Loss of rent coverage reimburses you for the rental income you would have received if the property hadn't been damaged. It doesn't pay your mortgage directly, but it replaces the income you'd use to pay it, preventing cash flow crises during repairs.
Most DP-3 policies cover lost rental income for the "reasonable repair period" or up to 12 months, whichever is shorter. Some policies have a dollar cap instead. Check your policy for the specific limit.
No. Loss of rent coverage is for landlords and pays the rental income you'd have collected. Additional living expense (ALE) is for homeowners or tenants and covers the extra cost of temporary housing while your primary residence is repaired.
Loss of rent coverage pays the "fair rental value" of the property, not necessarily the actual rent charged. If fair rental value is higher than your actual rent, you might receive more than the tenant was paying. Conversely, if you were charging above market, you'd receive the fair value.
Yes. Even if the tenant breaks the lease due to the covered loss and moves out permanently, you receive loss of rent payments until the property is repaired and ready to re-rent, up to your policy limit.
If you own a duplex and only one unit is damaged, you'd only receive loss of rent for the uninhabitable unit. Ensure your policy's loss of rent limit is sufficient to cover all units simultaneously in a worst-case scenario like a building-wide fire.