This coverage pays for the rent the building could have earned, less any discontinued expenses, while the premises is not fit for occupancy. Refer to Coverage D under your homeowner's or dwelling policy for more information.

(your own premises): If a covered loss makes your principal residence unfit to live in, your policy provides your choice of either Fair Rental Value or Additional Living Expenses. If you choose Fair Rental Value, you will receive the fair rental value of that part of your residence, minus expenses that do not continue while the premises are unfit to live in.

Under the broad and special dwelling forms, coverage is provided for fair rental coverage for that part of the residence premises that is rented or held for rental to others. If a loss occurs under coverage to that part of the premises unsuitable for living, this coverage would pay the lost rental value. The limit of insurance is 10% of the dwelling limit. Fair rental value is the amount of that could reasonably be charged for the premise. Back to list of terms.