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.

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).