Indiana Independent Adjuster Practice Exam

The type of coverage that assists when a renter stops paying rent due to property damage is fair rental value coverage. This specific coverage is designed to compensate landlords for lost rental income resulting from a covered loss, such as a fire or other significant property damage that renders the property uninhabitable.

When a property is damaged and the tenant is unable to occupy it, they may stop paying rent. Fair rental value coverage helps mitigate this financial impact for the landlord by covering the amount of rent lost during the time the rental property is being repaired or restored. This coverage ensures that landlords are not financially harmed due to circumstances beyond their control.

The other types of coverage listed serve different purposes. Personal property coverage typically protects the renter's belongings, dwelling coverage is aimed at covering the physical structure itself, and additional living expenses coverage helps renters cover costs incurred while temporarily displaced from their residence due to a covered event. However, these do not specifically address the situation of lost rental income due to the renter's inability to pay as a result of property damage.