How does the TDP 2 policy compensate for loss of rental income?

The TDP 2 policy compensates for loss of rental income by providing coverage while repairs are made. This means that if a property covered under the TDP 2 policy becomes uninhabitable due to a covered loss, the policy includes provisions to compensate the property owner for the loss of rental income during the time it takes to make repairs. This is a crucial benefit for landlords as it helps mitigate financial losses that can occur when rental properties are damaged and cannot be occupied by tenants.

In contrast, other options do not accurately reflect the terms of the TDP 2 policy. A one-time payment would not adequately address the ongoing issue of lost rental income while repairs are ongoing. Indicating that loss of rental income is not covered under the TDP 2 policy fails to recognize this important aspect of financial protection for property owners. Lastly, offering a lower premium does not relate directly to how the policy compensates for loss of rental income, as pricing does not equate to coverage benefits. Therefore, the correct option highlights the specific benefit that ensures property owners are protected during the recovery phase after a loss.