Rental Loss Insurance
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Rental Loss Insurance?
Rental Loss Insurance is intended for businesses and individuals. It is an add-on to fire and homeowners’ insurance and compensates for rental income lost as a result of damage covered by the aforementioned insurances.
What Is Covered?
Compensation for loss of rent, in part or in full, resulting from damage to a property that is covered under homeowners’ fire insurance or homeowners’ insurance.
What Is Not Covered?
Additional loss of rental income due to strikes, work stoppages, mechanical failure, operational delays caused by renovations, expansions, government orders, or similar events.
Damage that is already compensated under another insurance policy.
Are there any restrictions or precautionary rules?
The insured is required to comply with Vörður's precautionary rules.
The insured is required to cooperate with the company on measures to prevent or minimize loss of rent.
The insured must ensure that the property’s packaging or storage complies fully with applicable laws and regulations at all times, as relevant.
The insured must follow instructions or remarks from public supervisory authorities, such as the Construction Authority and the Consumer Agency.
The insured must ensure that the insured property is always locked and that all windows are closed.
In unheated premises, water flow must be shut off, and water pipes and connected devices must be drained when there is a risk of freezing.
The insured must, to the extent possible, keep drains clear by removing mud or ice.
Where is the insurance valid?
The insurance only applies at the location specified in the insurance certificate.
What are the insured's obligations?
Provide all necessary information, whether at renewal or when making changes to the insurance.
Report damage at the first opportunity and no later than within one year of the insured event.
When and how is the insurance paid for?
Insurance premiums must be paid on the due date. Upon renewal, the annual premium increases in accordance with changes in the index from the contract’s base index. Vörður sends invoices monthly to online banking or annually if payment in a single installment is requested. The payment method can be changed via Vörður’s My Pages. There you can also pay premiums with a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.