Loss Of Rents Coverage Calculator

LOR coverage insures rent. This calculator tests adequacy.

Annual rent

Coverage months

Expected restoration months

Coverage gap rent

$425,000

Coverage amount

$1,020,000

Gap months

How the math works

Coverage = monthly rent × coverage months. Gap = (restoration − coverage) × monthly rent.

On $1.02M annual rent with 12-month coverage but 17-month restoration: $425k uninsured gap. Close by: (a) extending coverage to 24 months (modest premium increase, $2-5k/yr), or (b) reserving cash equivalent. Gap is the easiest-to-miss insurance trap.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Loss Of Rents Coverage Calculator is built to give a quick, browser-based estimate for loss of rents coverage. LOR coverage insures rent. This calculator tests adequacy. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the loss of rents coverage result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this loss of rents coverage estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter annual rent.
Enter LOR coverage limit.
Enter expected restoration months.
Read coverage gap.

Frequently Asked Questions

What's covered?

Rent insurance (aka Loss of Rents, Rental Value coverage). Pays landlord's rent during untenantability caused by covered peril (fire, wind, flood if endorsed). Typically included in property policy as additional coverage or separate endorsement.

Typical limits?

Standard: 12 months' rent. Extended: 18-24 months. Major assets: up to 36 months via agreed amount endorsement. Actual needs driven by expected restoration time for asset type. Small strip: 12 months fine. High-rise office: 24+ months prudent.

Gaps?

Extended restoration exceeds coverage period. Partial damage not triggering coverage. Business interruption (tenant's revenue vs landlord's rent — different coverages). Lease termination by tenant post-casualty (triggers new lease-up period, not covered by LOR).