Why Rent Rolls Aren’t Enough to Support a Loss of Rents Claim

When a property owner experiences a loss — fire, water damage, hurricane, or another covered event — the first instinct is often to hand over the rent roll to the carrier or adjuster as the basis for a Loss of Rents claim. But rent rolls tell only part of the story. A rent roll shows who is supposed to pay rent; a Loss of Rents calculation requires proof of what rent was actually lost. Those two things are not the same.

Rent rolls are forward-looking. They list tenants, lease terms, and the rent the landlord expects to collect. However, they do not reveal:

• Whether tenants were current on payments prior to the loss,
• Whether rent stopped due to the loss or because the tenant was already delinquent, or
• Whether vacancies were caused by — and covered by — the incident.

Relying solely on rent rolls can inflate a claim and create unnecessary disputes and delays.

Understanding tenant movement and lease behavior is critical. Some tenants may move out because the unit was offline due to the loss; others may leave simply to avoid the disruption, or they may be relocated to another unit. Some tenants receive concessions or discounted rent instead of moving out. Each scenario affects the loss value differently.

Profit and loss statements also play a key role. “Other income” categories — such as laundry, parking, or pet fees — often decrease alongside rent when tenants move out, and those reductions need to be captured in the loss.

Lease cycles must also be considered. In college markets, for example, leasing may only occur once a year on September 1. If damage prevents leasing during that period, the landlord may lose an entire lease cycle even if the property is repaired by spring. Missing the lease inception date can create significant loss that rent rolls alone won’t reveal.

To build a defensible Loss of Rents claim, additional documentation is needed:

• Tenant ledgers show actual payment history and whether the tenant was current.
• Lease agreements confirm contracted rent and intended move-out dates.
• Vacancy records identify whether tenants could have been relocated to other units (for example, if the building had sufficient capacity).
• Communication records support whether concessions or abatements were tied to the loss.

Loss of Rents calculations are based on actual economic loss — not projected income. Carriers and opposing experts will focus on whether the loss event caused the vacancy, and whether rent was collectible before the loss occurred. Rent rolls are a necessary starting point, but without documentation that verifies actual lost cash flow, they are not evidence.

A defensible Loss of Rents claim ties lease terms → tenant payment history → actual lost income. When that narrative is supported with proper documentation, claims are resolved faster and with fewer disputes.