Loss Of Rent
[applicable to Houseowners and/or Householders]
Loss of Rent cover is automatically give, under Section
IIIA, if you buy either the Houseowners (for building) and/or Householders (for
The loss of rent must be actually incurred as a result of damage to the insured
building or the building containing the insured contents caused by one of the
insured perils to render it uninhabitable.
The compensation payable will differ depending on the following :
If you are the owner and you live in your own house, you will be paid reasonable
additional expense incurred, if you have to move to a hotel whilst your house
is uninhabitable or
If you are the owner but you have rented your house to somebody else, you will
be paid the actual loss of rent, if you tenant have to move out while your house
is rendered uninhabitable
If you are the tenant but not the owner of the house, you will be paid reasonable
additional expense incurred, if you have to move to a hotel whilst the house is
Note that the compensation is payable only for the period the building is rendered
uninhabitable as a result of the damage. This means that compensation will not
be paid after your house has been completely repaired and rendered habitable again,
although you may still not have a tenant.
The cover provided under this section is however, limited to 10% of the total
sum insured on building and/or contents.