When does DP Coverage D apply?

DP Coverage D, also known as Fair Rental Value, applies specifically after a covered loss. This coverage is designed to compensate the property owner for lost rental income when the rental property becomes uninhabitable due to a covered event, such as a fire or storm damage. The intent is to ensure that the owner does not suffer financial loss due to the inability to collect rent while repairs are being made.

Understanding this feature of coverage helps clarify its purpose within the context of Property Insurance. The focus is on the rental income interruption caused by an insured peril. Other scenarios, such as renovations or the state of occupancy of the premises, do not trigger this specific coverage, which is solely concerned with loss of rental income following an event that qualifies as a covered loss under the policy.