Glossary

Business interruption insurance

Business interruption insurance replaces lost revenue when a covered event — fire, storm, major damage — takes a property offline. For property managers it covers the rental income lost while a home is repaired, and can extend to the manager's commissions on that income.

By Andrew Bate, Co-founderReviewed by Stuart BateUpdated September 14, 2026

Why this matters for property managers

A home that is uninhabitable for eight weeks in peak season loses more in bookings than the repair itself costs. Owners feel that loss directly and often look to the manager for answers. Coverage that makes the owner whole — and protects the manager's fee income — keeps the relationship intact through the rebuild.

Related terms

Exclusion

An exclusion is something a policy specifically does not cover. Common exclusions include flood, earthquake, intentional damage, wear and tear, and — in most homeowners policies — commercial short-term rental activity.

Indemnity

Indemnity is the principle of restoring the insured to the financial position they held before a loss. Insurance makes the policyholder whole; it does not make them better off, which is why a $200,000 property cannot be insured for $500,000.

Property damage coverage

Property damage coverage pays to repair or replace structures, contents, appliances, and furnishings damaged by a covered cause, including guest-caused damage. It is the insured layer that sits above a damage waiver program's retention.

Browse every term in the insurance glossary for property managers.