What type of policy would cover the insured against loss of rental income?

Business interruption insurance is designed to cover the loss of rental income that an insured may experience due to a covered event, such as a fire or other disaster that temporarily prevents the property from being leased to tenants. This type of policy compensates for the income that would have been generated from the property during the period of disruption, effectively covering the financial losses associated with the tenants not being able to occupy the premises.

The policy typically accounts for the profit that would have been earned as well as ongoing expenses that may still need to be paid while the property is undergoing repairs or has been rendered uninhabitable. This ensures that the property owner is supported financially until normal operations can resume.

In contrast, property damage coverage specifically protects the physical structure and contents of the property itself, while an extra expense policy focuses on additional costs incurred to minimize loss during a business interruption but does not specifically cover the loss of income. General liability insurance addresses the risk of claims involving injuries or damages to third parties but does not relate to lost rental income due to property damage.