If you’ve ever purchased a home, you likely are somewhat familiar with homeowner’s insurance. This type of insurance typically covers damages to the home and personal belongings inside it, liability claims against the homeowner, and loss of use of the home due to a covered event. Landlord insurance, on the other hand, provides coverage for the unique risks associated with renting out a property. This includes property damage caused by tenants, loss of rental income due to property damage or tenant eviction, and liability claims arising from tenant injuries or property damage.
Investment owner/landlord insurance protects you against the liabilities of renting out your property. If you own a rental property, landlord insurance may ensure that you are completely protected. Landlord insurance is designed for non-owner-occupied residences and covers features of your rental properties that other insurance policies do not cover. Some of the things that landlord insurance covers are:
- Personal property owned by the landlord that is used to maintain or service the rental property, such as appliances or tools.
- Liability coverage to help pay for medical and legal fees.
- Property damage or loss of rental income caused by natural disasters, such as fire, storm, or flood.
- Tenant-related risks, such as rent default, unauthorized alterations to the property, or theft by a tenant.
It is critical to thoroughly review the terms of a landlord insurance policy. You can avoid surprises or unexpected fees in the case of a claim by understanding the policy’s terms. Know what is and isn’t covered, as well as any limitations or exclusions that may apply.
Landlord insurance premiums may be tax-deductible as an expense related to the rental property, allowing landlords to deduct the cost from their taxable income. However, the rules around deductibility can be complex and the amount can be limited by other factors. To determine if landlord insurance premiums are tax-deductible, it’s recommended that landlords consult with a qualified tax professional or refer to official IRS guidance.
At Real Property Management Engage, we understand the importance of protecting your investment. We can help guide you to the insurance policy you need, making sure that you and your residents are properly insured against the unknown. Our comprehensive Frisco property management services are designed to keep your costs low, maximize profits, and protect your real estate investment for years to come. For more information about our property management services, please contact us online or give us a call at 214-257-0101 today!
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