Question

In the Dp-2 and DP-3, what is the time-based limit for coverage D - fair rental value?

A. 180 days, or the amount of time needed to repair or replace damaged property, whichever is shorter
B. 60 days
C. The shortest time required to make repairs or replacements needed to return the property to rentable condition
D. The amount of time that it takes for the insured to start receiving rental income again after a loss

Answer 1

In the DP-2 and DP-3 insurance policies, the time-based limit for Coverage D - fair rental value is 180 days, or the amount of time needed to repair or replace damaged property, whichever is shorter.

Step-by-step explanation:

In the DP-2 and DP-3 insurance policies, the time-based limit for Coverage D - fair rental value is option A: 180 days, or the amount of time needed to repair or replace damaged property, whichever is shorter.

This means that if a rental property becomes uninhabitable due to a covered loss, the insurance policy will provide coverage for the fair rental value for up to 180 days or until the repairs or replacements are completed, whichever is shorter.

For example, if a fire damages a rental property and it takes 90 days to repair the property, the insurance policy will provide coverage for the fair rental value for those 90 days.