Claiming loss of income due to water damage in residence

Question

I have been recently required to vacate my residence due to flooding. The ceilings, floors and fittings need to be removed from the bathroom, kitchen and hallway, rendering the property uninhabitable until the work is complete. I have a lodger that rents a room from me that has also had to vacate the premises. Obviously, for the period of time we re not able to use the property, I would feel uncomfortable to charge rent. Would it be possible to class this loss of rent payment on my insurance claim as a loss of earnings due to the water damage and work required?

I am a UK resident living in Scotland.

Answer 1

Everything is insurable. The only question is the cost of insuring it, and getting a company to write a policy for that coverage.

A key point is: does the insurance company know you have a tenant? That may determine what coverage exists for that tenant.

As to covering the mortgage, you may be covered regardless of the tenant. For you the first issue is getting money to cover the mortgage and other monthly costs. You also need to know what they will pay for other housing and storage costs during the time you don't have a place to live.

If you don't have coverage to cover you specifically as a landlord they are unlikely to cover anything beyond your mortgage. Lets say the mortgage is 1000 a month, and the tenant paid you 250. The insurance company may give you the 1000 each month, and in that case you are fine. But If you rented multiple rooms and the total payment from the renters was 700 and your mortgage was only 500, they would only cover the 500.

You need to see what coverage you have, and you have to see if that policy mentions renting a room. That will also be important to see what coverage you have for the renters possessions.