You probably have some familiarity with homeowner’s insurance if you have ever purchased a property. This sort of insurance often compensates the policyholder for financial losses incurred as a result of a covered occurrence, such as repairs to the home and its contents, legal defense costs, and rental housing. On the other hand, landlord insurance protects the landlord against the specific dangers that come with renting out a property. This entails responsibility claims resulting from tenant injuries or property damage, as well as loss of rental income as a result of tenant eviction 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 might guarantee your full safety. Landlord insurance is designed for non-owner-occupied residences and talks about the parts of your rental homes 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 when a renter doesn’t pay rent, makes changes to the property without permission or steals.
It is extremely crucial to read the terms of a landlord insurance policy. 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, 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.
We know how important it is to protect your investment at Real Property Management Anchor. We can help you find the right insurance coverage so that you and your residents are protected from the unknown. Our complete property management services in Locust Grove are meant to keep your costs low, increase your earnings, and protect your real estate investment for years to come. Contact us online or give us a call at 770-506-1237 to find out more about our property management services.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
