Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy?

Fair rental value coverage in a dwelling policy is designed to reimburse property owners for lost rental income when a covered loss prevents tenants from occupying the property. This coverage extends to situations specifically outlined in the policy, which typically includes losses caused by covered perils such as fire.

The reason that the cancellation of a lease does not fall under this coverage is that it is not a direct result of a physical loss to the property but rather an action taken by the tenant or landlord. Fair rental value coverage is meant to respond to losses that stem from physical damage due to covered perils, not from contractual disputes or voluntary decisions by either party to terminate tenancy.

Fire loss is covered because it is one of the perils typically insured by dwelling policies. Similarly, unauthorized entry resulting in damage can also be covered if it leads to loss of rental income. Theft may also be covered depending on the policy specifics, where a loss may affect the renting situation if for instance, it compels tenants to vacate due to perceived safety concerns.

Therefore, the assertion that losses caused by lease cancellations are covered is the one that does not align with the purpose and stipulations of fair rental value coverage in a dwelling policy.