Oceanfront Rentals Ltd. manages an apartment building in Halifax. Due to a fire originating in one unit, three other units have become uninhabitable for two months while repairs are completed. The landlord has a comprehensive property insurance policy. Which type of coverage would explicitly compensate the landlord for the rental income lost during this period?

Question: Oceanfront Rentals Ltd. manages an apartment building in Halifax. Due to a fire originating in one unit, three other units have become uninhabitable for two months while repairs are completed. The landlord has a comprehensive property insurance policy. Which type of coverage would explicitly compensate the landlord for the rental income lost during this period?

Answer options: ✅ Loss of Rental Income (or Business Interruption) coverage.

• Contents insurance coverage for the building.
• Public liability insurance coverage.
• Boiler and machinery breakdown coverage.

Correct answer: Loss of Rental Income (or Business Interruption) coverage.

Explanation: Loss of Rental Income or Business Interruption insurance is specifically designed to compensate property owners for the rental income they lose when their property becomes uninhabitable due to an insured peril, such as fire, for a certain period of time.