What is the Fair Rental Value coverage known as in the dwelling policy?

Fair Rental Value coverage in a dwelling policy is designed to reimburse the policyholder for lost rental income when a rental property becomes uninhabitable due to a covered peril. This aspect of coverage is critical for landlords, as it ensures they can maintain their financial stability even when their property is temporarily unusable.

In the context of the dwelling policy, Fair Rental Value is classified under Coverage D. This designation specifically addresses the loss of rental value. When a tenant is unable to occupy a dwelling because of damage from a peril such as fire or storm, Coverage D calculates the rental income that would have been generated during the period of repair, providing financial protection to the property owner.

The other coverages mentioned refer to different aspects of the insurance policy: Coverage A typically encompasses the dwelling itself, Coverage B may cover other structures on the property, and Coverage C is focused on personal property. Therefore, Coverage D is correctly identified as the provision pertaining to Fair Rental Value, emphasizing its role in safeguarding landlords' income during times of property damage.