Loss of Rents Coverage

Loss of rents coverage — also called business income or rent loss insurance — is designed to replace the lot rent income you lose while your property is being repaired or restored after a covered loss. For mobile home park and manufactured housing community operators, this coverage is essential because a single infrastructure failure can affect dozens of income-producing lots at once.

Consider the scenario: a water main collapse during a hard winter damages six lots and renders them uninhabitable. Repairs take four months. During that time, you may be legally required to abate those tenants' lot rent under your state's landlord-tenant laws. Loss of rents coverage replaces that income stream — six lots at your average monthly rent, for four months — during the repair period.

Proper loss of rents coverage includes an adequate waiting period (the time between the loss and when coverage kicks in, typically 72 hours) and a sufficient restoration period to cover realistic repair timelines. For significant infrastructure losses, repair periods can extend to 12-24 months, particularly in markets with permitting delays or contractor shortages. Ensure your policy's restoration period is realistic for your market.