How can a policyholder maintain coverage for loss of rental income?

The correct choice is to add Coverage D to the policy, which is designed specifically to cover loss of rental income. Coverage D, often referred to as Loss of Use or Fair Rental Value, provides compensation for the rental income that a property owner loses when the property is uninhabitable due to a covered peril, such as fire or damage from a storm.

This coverage is essential for landlords who depend on rental income to cover mortgage payments and other expenses associated with the property. By including this coverage in the dwelling policy, a policyholder ensures that they have financial protection in place specifically for scenarios where their rental property cannot generate income.

While keeping the property occupied at all times might help avoid loss of income, it’s not a guaranteed or practical approach, as there may be situations out of the owner's control that lead to vacancies. Increasing the policy premium does not directly impact coverage for rental income—it merely raises the cost of the insurance without providing specific benefits related to rental loss. Reporting repairs on time is important for maintaining the property but does not inherently relate to coverage for loss of rental income. Thus, adding Coverage D is the most effective and relevant method for maintaining protection against potential income loss due to property damage.