Almost every Declaration in Illinois requires homeowners to take out some form of insurance policy for the interior of their units, but these insurance policies do not cover displacement, lost rent, or loss of income.
Most people think that additional insurance policies are unnecessary. However, if something catastrophic occurs, such as a pipe burst, a fire, or a storm, and the unit is deemed uninhabitable, you will be forced to move out of your unit and pay thousands of dollars to relocate while the unit is under construction.
The cost for displacement insurance and lost rent or lost income insurance is additional, but it will save you money and prevent stress if your unit is damaged.
Learn more here.