If you’ve ever bought a house, you probably know a little bit about homeowner’s insurance. Most of the time, this type of insurance includes damage to the home and personal items inside it, liability claims against the homeowner, and loss of use of the home because of an event that is covered. On the other hand, landlord insurance covers the unique risks that come with renting out a home. This includes damage to the property caused by the tenant, loss of rental income because of damage to the property or removal of the tenant, and liability claims because of injuries or property damage caused by the tenant.
Investment owner/landlord insurance saves you from any liabilities of renting out your property. If you own a property that you rent out, landlord insurance may protect you completely. Landlord insurance is made for homes that are non-owner-occupied residences. It covers parts of your rental properties that other types of insurance policies don’t. Some things that are covered by landlord insurance are:
- Personal property, like appliances or tools, that belong to the owner and are used to keep the rental property in good shape or fix it up.
- Liability coverage to help pay for things like medical bills and court fees.
- Property damage or loss of rental money caused by natural disasters like fire, storm, or flood.
- Tenant-related risks, such as not paying the rent, making changes to the property without permission, or stealing from the property.
It is very important to look over a landlord insurance coverage in detail. If you know the policy’s terms, you won’t be surprised by fees or charges when you make a claim. Know what is and isn’t covered and if there are any limits or exclusions.
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 Legend, 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 Plano 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 214-227-2404 today!
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