I am a North Carolina subscriber with a question regarding Fair Rental Value. Our insured owns a single family dwelling insured under an HO 00 03 05 11. In December of 2023 he moved from the home to reside in a newly purchased dwelling . He contacted a management company and asked it to hold the dwelling our for rent. He also placed an ad on-line to rent the dwelling. In mid-January of 2024 the management company entered the dwelling to show it to a prospective tenant and found a burst pipe. The damage rendered the dwelling unfit to live in. The insured filed a claim for damage to the dwelling. The insurer accepted the claim and the insured and insurer reached agreement on the scope and cost. We submitted a claim for loss of rent. The insurer denied the claim stating the following:

"Rented or held for rental are both used in the past tense. This means the property is actively being rented, or there is a signed lease or hold on the home to prevent it from going to another renter. The policy language does not mean while being shown to potential renters.

This would be why there is no coverage for the loss of rent. If there is any information that we are not aware of, please let us know."