Insurance claims for rental property owners in Illinois
When a fire, a burst pipe or a storm empties a rented unit, you lose the building and the rent at the same time. We claim both, under your landlord policy.
One loss, two claims in the same file
A landlord policy, often called a dwelling policy, pays for the damage and separately for the rent. The rent part has its own proof and its own limit, and it is easy to leave until the building is already settled.
The building claim
Measured in materials and labor, unit by unit.
- Every unit the water or smoke reached, not only the one where it started
- Common areas: halls, stairs, the basement laundry
- Appliances and flooring you supply to tenants
The rent claim
Measured in months, from the lease and your deposits.
- Rent from each unit that cannot be lived in
- For as long as the repair reasonably takes
- Less the costs you stop paying while it is empty
The rent clock: what we record at each point
Lost rent is paid by time, so the dates decide the amount. These are the points the carrier will ask about.
- The day of the lossPhotos of every unit, the lease for each, and the date tenants moved out.
- The inspectionWhich units the carrier agrees are uninhabitable, and why it says the others are not.
- The repair scheduleA contractor’s timeline. A slow estimate stretches the period you have to prove.
- Work completeFinal inspection or occupancy sign-off, dated.
- Rent resumesThe lease or move-in date that ends the rent claim.
A unit that was already empty and listed when the loss hit is a different question, and the vacancy wording in your policy decides it. See vacant and unoccupied property claims.
How the lost rent is worked out
Fair rental value pays the rent you lose on the part that cannot be lived in. Costs that stop while the unit is empty come off that figure, as the IRMI insurance glossary explains in its entry on fair rental value coverage.
That is where an owner-paid utility or a laundry contract matters. Costs that keep running, such as the mortgage, taxes and the policy premium, are not taken off.
Your declarations page shows the limit for this coverage. If the building also served commercial tenants, the policy may call it business income instead; our business interruption page covers that wording.
Unit 2, one monthExample figures, not a client’s
Multiplied by the months the repair reasonably takes, up to the policy limit.
Papers that prove the rent, and what each one proves
A carrier will not take the rent figure from your word. These are what we put in front of it.
| Paper | What it proves |
|---|---|
| Signed lease for each unit | The monthly rent and that the unit was let when the loss happened. |
| Rent roll for the last 12 months | The rent was actually collected, not only written in a lease. |
| Bank deposits matching the rent roll | The income reached you, month after month. |
| Utility bills before and after the loss | Which owner-paid costs stopped, so only those come off. |
| Tenant move-out notices or emails | The date each unit stopped earning. |
| Contractor’s schedule and final sign-off | How long the repair took, and the day it ended. |
What Illinois requires before you sign with a public adjuster
The Illinois Department of Insurance sets these rules for every public adjuster, us included:
- A written contract, in a form approved by the Director of Insurance.
- You can cancel it by certified mail within 5 business days after signing.
- A public adjuster may not ask for your business between 7 p.m. and 8 a.m., or while the fire is still being fought.
- The fee, usually a share of what the carrier pays, can be negotiated.
From the Department’s page on homeowners and renters public adjusters. Our fee is written into the contract before we start, and nothing is paid upfront.
Send us the loss and the leases
We represent owners of multi-family and commercial property in Illinois as well as homeowners, so a three-flat after a fire or an apartment building after a burst pipe is work we know. The review is free.
- The declarations page of your landlord policy
- The lease for each unit that had to empty
- Photos of each unit, and the carrier’s estimate if one has arrived
Your tenants claim their own belongings and hotel costs on their renters policies. If you live in one of the units yourself, your own hotel bill is a separate item; see additional living expenses.
Questions landlords ask about rental claims
Do you handle insurance claims for rental properties in Illinois?
Yes. We represent owners of rental homes, two-flats and apartment buildings, as well as homeowners and commercial owners, across Illinois.
Does my landlord policy pay the rent while the unit is being repaired?
If it carries fair rental value coverage, it pays the rent you lose on the unit that cannot be lived in, less the costs that stop. Your declarations page shows whether you have it and the limit.
Who pays for my tenant’s furniture and hotel?
Their own renters policy. Your policy covers the building, the items you supply to tenants and your lost rent.
What does a rental property claim cost me?
You pay nothing at the start. Our fee is a share of what the carrier pays on the claim, set in the signed contract, and if there is no recovery there is no fee.