05 Aug What happens when a building sustains major damage and the landlord cannot collect their rents until the building can be occupied again?
What happens when a building sustains major damage and the landlord cannot collect their rents until the building can be occupied again?
Most insurance policies are now written to pay 12 months “loss of income” (or rents). Currently, it can take up to 12 months simply to obtain the permits to rebuild when there is extensive damage leaving the building owner with no income after that time until the building can be occupied. This can lead to thousands or tens of thousands of dollars of lost income that cannot be recovered. Many landlords count on their rents to pay the mortgage and taxes on their buildings and lack of this coverage can lead to financial ruin.
How is this solved? The insurance brokers at Allstar West Insurance can offer 18 – 24 months loss of income coverage with many of the insurance carriers we represent at very little increase in premium – usually less than $50 per year.
Remember to think of Allstar West Insurance when you are talking with a property owner who relies on their rental income to maintain their building.
This week I would like a referral to Russell Mayer @ Keegan Coppin Petaluma to offer prompt service and options to his clients.
Andrea Christensen Allstar West Insurance Services Commercial Insurance Broker – (707) 762-4700