Which coverage pays for the loss of rent due to a covered property loss?

Prepare for the Rhode Island Property Producer Exam with targeted study materials. Utilize flashcards and multiple choice questions, each providing hints and explanations, to maximize your readiness and confidence for the exam!

The coverage that pays for the loss of rent due to a covered property loss is Coverage D - Fair Rental Value. This type of coverage is designed to compensate property owners for loss of income that results from damage to a rental property that makes it uninhabitable. For instance, if a fire or other covered event damages a rental unit and the property cannot be rented while repairs are being made, this coverage would provide compensation for the lost rental income.

Coverage A - Dwelling pertains specifically to physical damage to the insured dwelling itself, such as the structure and any fixtures attached to it. It does not address income loss incurred from renting out the property.

Coverage E - Additional Living Expenses covers the costs of temporary housing and related living expenses for the insured, should they need to live elsewhere due to damage to their home. This is also not related to rental income loss.

The option indicating that it is "Not covered" is incorrect as there is indeed a specific coverage that addresses lost rents under certain conditions. Thus, Coverage D specifically caters to the loss of rental income resulting from a covered loss, making it the correct answer.

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