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Loss of Rent Cover Vs. Rent for Alternative Accommodation Cover 

In home insurance, it is essential to know the differences between two major aspects: Loss of Rent Cover and Rent for Alternative Accommodation Cover. Knowing these distinctions will definitely help you choose the right coverage for your needs. On this note, read this page to learn about loss of rent versus rent for alternative accommodation cover in home insurance.

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Loss of Rent (LOR) Cover Versus Rent for Alternative Accommodation Cover

Home insurance policy refers to a type of financial cover that protects your home/property/flat and its contents from several unforeseen risks.

In home insurance, Loss of Rent (LOR) cover and Rent for Alternative Accommodation cover are two distinct components serving different purposes.

Loss of Rent (LOR) cover helps landlords by covering lost rental income if their property becomes unavailable due to damage. On the other hand, Rent for Alternative Accommodation cover pays for temporary housing if you can't stay in your primary residence due to damages.

Let's understand the difference between loss of rent cover and rent for alternative accommodation cover in detail:

Aspects Loss of Rent Cover Rent for Alternative Accommodation Cover
Purpose Compensates for lost rental income. Covers additional living expenses incurred due to displacement.
Eligibility Applicable to rental properties. Applicable to primary residences.
Triggering Event The rented property becomes uninhabitable due to covered peril. The primary residence becomes uninhabitable due to covered peril.
Coverage Period Duration of repair period or until property is habitable again. Duration of displacement until primary residence is restored.
Example Rental property damaged by a storm, resulting in loss of rental income. Primary residence damaged by costal waves, requiring temporary housing for a certain period.

Choosing the Right Home Insurance Coverage Today!

When buying a home insurance policy, it is crucial to identify your needs and then analyze your circumstances carefully. Remember, if you own rental properties, Loss of Rent Cover is essential to protect your rental income stream during repairs. On the other hand, being a homeowner a Rent for Alternative Accommodation Cover ensures you have a place to stay if your home becomes uninhabitable due to unforeseen circumstances.

The Bottom Line!

As a homeowner, you should differentiate between Loss of Rent (LOR) cover and Rent for Alternative Accommodation cover. Correct knowledge helps you find adequate coverage and prepare yourself for unexpected events that may disrupt your pocket.

Written By: PolicyBazaar - Updated: 14 May 2024
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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Reviews & Ratings

4.4 / 5 (Based on 120 Reviews)
(Showing Newest 10 reviews)
Virendra
Bokaro, July 26, 2022
Coverage for natural calamity
I was looking for an insurance policy that provides me coverage for natural calamity. Since my house is located near a river and it floods my area in the rainy season. So i went on the Policybazaar website and particularly look for this coverage found the exact plan that provides this coverage.
Sunil
Bilaspur, July 26, 2022
Premium Calculation
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Manish
Bikaner, July 26, 2022
Natural Calamity cover
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Mohit
Amritsar, July 26, 2022
Enough coverage
I was looking for a home insurance plan online. I was fed up as i have to visit different websites to look for a single suitable insurance plan. However, i stumbbled upon Policybazaar website where i was able to find the right insurance plan that could provide me enough coverage.
Sahil
Bareilly, July 26, 2022
Nice customer service
I wanted to purchase a home insurance policy and a friend of mine suggested to purchase it from Policybazaar. I bought the policy and after that i had a confusion regarding exclusions so i called up Policybazaar customer care and they cleared out the confusion and i loved their customer service.
Jitendra
Ajmer, July 26, 2022
Qiuck claim
I purchased a home insurance policy recently. However, due to a natural calamity, my house was damaged as the pressure of the water because of flood broke the enterance door of my house. But the insurance plan that i bought got me covered and i as able to get the quickest claim possible.
Prashant
Delhi, July 26, 2022
Natural calamities covered
I bought a home insurance policy recently. As i live near a river and in the rainy season, my area gets flooded so in order to protect my house and its contents, i purchased the insurance to get coverage for such natual calamities and i am tension free now.
Sharad
Kolkata, July 26, 2022
Wide coverage
The home insurance plan that i purchased from policybazaar's website is a great plan that provides me coverage for not only the structure but also cover several expensive content of the home such as paintings, mobile phones, laptops, television, etc.
Ravi
Ahmedabad, July 26, 2022
Suitable insurance plan
I purchased the group health insurance policy from Policybazaar website. First of all, i did not have to wander much online while lookig for a home insurance plan that fits my requirement and i found the suitbale home insurance plan by comparing different plans on the website.
Yashashvi
Amritsar, June 09, 2022
Natural calamities covered
I bought a home insurance policy recently. As i live near a river and in the rainy season, my area gets flooded so in order to protect my house and its contents, i purchased the insurance to get coverage for such natual calamities and i am tension-free now.
  • Disclaimers+

    #Savings of 28% are based on the comparison between the highest and lowest premiums for a pucca building with sum insured of >₹ 1 crore at Delhi, for property age less than 5 years and policy term of 11 years.

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