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Rental income worksheet

Rental value, the measure behind loss of rents coverage, is the net rental income a building would have earned had it not been damaged, plus the fair rental value of any space the owner uses and the operating expenses that keep running. This worksheet totals those monthly figures over the months of repair and any extended period you enter. It multiplies the inputs and does nothing else. The terms follow ISO's Business Income (and Extra Expense) Coverage Form, CP 00 30.1

Your building

Result

Monthly total
$183,000
During the repair
$1,464,000
Extended period
$541,479
Total
$2,005,479

Estimate from the numbers you enter. General information, not insurance, legal or financial advice. Your policy's wording decides what is paid.

How the math works

CP 00 30 (October 2012 edition) counts three things in rental value: net income from rental income from tenant occupancy, the fair rental value of any part of the premises the owner occupies, and continuing normal operating expenses for the premises, including payroll and charges that are the tenants' legal obligation but would otherwise be the owner's.1

  1. Monthly total = monthly rents + tenant-paid charges + fair rental value of owner-occupied space.1
  2. Repair period total = monthly total x months of repair.1
  3. Extended period total = monthly total x 12 / 365 x days entered.1
  4. Total = repair period total + extended period total.1

In the form, the period of restoration starts 72 hours after the direct physical loss and ends on the earlier of two dates: when the property should be repaired, rebuilt or replaced with reasonable speed and similar quality, or when business resumes at a new permanent location. Extended business income then covers rental value from the date tenantability is restored until tenant occupancy could be restored, with reasonable speed, to the level it would have reached with no loss, or for 60 consecutive days, whichever is earlier. An extended period of indemnity replaces 60 with the number of days shown in the declarations.1

The worksheet does not subtract expenses that stop, apply the 72-hour wait or compare the total with a limit.1

Example

Example: a 120-unit apartment building collects $174,000 a month in rents ($1,450 a unit), tenants owe $6,000 a month in charges the owner would otherwise pay, and the owner's leasing office has a fair rental value of $3,000 a month. Repairs take 8 months and the declarations show a 90-day extended period of indemnity.1

Example arithmetic on the CP 00 30 rental value definition1
LineArithmeticResult
Monthly total$174,000 + $6,000 + $3,000$183,000
Repair period$183,000 x 8$1,464,000
Extended period$183,000 x 12 / 365 x 90$541,479
Total$1,464,000 + $541,479$2,005,479
Example: the $2,005,479 total by part1
  • Rents, 8 months$1,392,000
  • Tenant-paid charges, 8 months$48,000
  • Owner-occupied space, 8 months$24,000
  • 90-day extended period$541,479
  • Total$2,005,479

Where the numbers come from

  • Monthly rents: a current rent roll. Fannie Mae's multifamily underwriting takes rents in place for occupied units from one.2
  • On ISO's Business Income Report/Worksheet (CP 15 15 10 12), rents go on line G, "Commissions Or Rents", under other earnings from business operations, which leave out investment income and rents from other properties.3
  • Months of repair: line L of CP 15 15 bases the amount of insurance on an estimate of the months needed, which may exceed 12, to replace the property and resume operations.3
  • Extended period days: the number shown in the declarations for the Extended Period Of Indemnity optional coverage, or up to 60 days of extended business income without it.1,3

Questions

What is rental value in business income insurance?
Under CP 00 30, it is the net income a building would have earned as rent from tenants, including the fair rental value of space the owner occupies, plus continuing normal operating expenses.1
When does loss of rents coverage start?
Under CP 00 30, the period of restoration for business income, including rental value, begins 72 hours after the direct physical loss or damage. The policy's expiration date does not cut it short.1
Does the extended period of indemnity raise the limit?
No. CP 00 30 says payments under Extended Business Income do not increase the applicable limit of insurance.1
What is a business income worksheet used for?
IRMI describes it as a form that estimates business income for the coming 12 months to select a limit. CP 00 30 requires one, with 12 months of actual and 12 months of estimated figures, to activate its Business Income Agreed Value option.4,1

Terms used here

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Sources

The tool does arithmetic only and sends nothing anywhere. The rules it follows are from the published sources below.

  1. 1. Insurance Services Office (copy hosted by Independent Insurance Agents of Texas): Business Income (and Extra Expense) Coverage Form, CP 00 30 10 12
  2. 2. Fannie Mae: Multifamily Selling and Servicing Guide, Section 203.01: Underwritten Net Cash Flow (effective October 26, 2026)
  3. 3. Insurance Services Office (sample copy hosted by Law.com): Business Income Report/Worksheet, CP 15 15 10 12 (sample form appendix)
  4. 4. IRMI: Business income worksheet

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