What type of insurance would cover lost rental income?

Loss of Income Insurance is specifically designed to cover the financial impact of lost rental income when a property becomes uninhabitable due to a covered loss, such as a fire or major damage. This type of insurance helps property owners recover lost revenue during the time the property is being repaired or rebuilt, ensuring that their financial stability is maintained despite an unexpected setback.

Property Insurance generally covers damages to the physical structure and may also include some basic protection for contents within the property, but it does not specifically address the issue of lost rental income. Flood Insurance provides coverage for damage caused by flooding, and while it can lead to instances where rental income is lost, it is not directly intended for that purpose. Liability Insurance protects property owners against legal claims made by individuals who may suffer injuries or damages while on the property, again not covering rental income losses. Thus, Loss of Income Insurance is the correct choice for addressing the specific concern of lost rental income during periods of property damage or unavailability.