Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification
A typical homeowners policy would not cover sucha damages,
Business Income Insurance is essential insurance protection that many owners refer to as loss of rental income.
Most property owners will insure to their annual gross rental income, however your Business Income limit should be sufficient to replace your profit (or loss) plus continuing operating expenses for the entire period of restoration and some additional time for lease up.
Business Income coverage is normally written for a specified limit or in some cases on an actual loss sustained basis. It is important to note that most policies written on an actual loss sustained basis limit coverage to a period of 12 months, which may not be sufficient for larger properties in the event of a catastrophic loss
If you did not have landlords insurance or business income insurance,
you will have a hard time getting your loss covered, however it will depend on the language of the policy,
if their is anything in the policy that states business income is covered,
you can win in court.
I have a policy with Lloyds of London that has coverage D Fair Rental Value $20,000 on the cover page. There is a small paragraph that discusses section D in the policy and it elimanates coverage for any non covered peril such as flood. But as I stated this would be because of their inaction.
I spoke to an agent and he said for me to fax in my leases, but he said that if they determine the loss was from flood then there would be no coverage. I have never heard back from them.
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