If you’ve ever bought a house before, you might know a little bit about homeowner’s insurance. Homeowner’s insurance generally covers damage to the house and personal belongings, as well as liability claims against the homeowner and loss of use of the home due to a covered event. Landlord insurance, on the other hand, is made to cover the specific risks that come with renting out a property, such as damage to the property caused by renters, loss of rental income because of damage to the property, or eviction of a tenant, and liability claims because of injuries or damage caused by tenants.
Investment owner/landlord insurance saves you from any problems that could come up if you rent out your property. If you own a property that you rent out, landlord insurance may help protect you. Landlord insurance is made for homes that aren’t lived in by the owner. It covers parts of your rental properties that other types of insurance don’t. Some things that are covered by landlord insurance 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.
Careful examination of a contract’s provisions of a landlord insurance policy is essential. In the event of a claim, you can save yourself time and money by familiarizing yourself with 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, landlords are encouraged to get professional advice from a tax professional or refer to official IRS guidance.
Real Property Management Acadia values the security of your property as much as you do. We can point you in the direction of the right insurance policy, protecting you and your tenants from the unknown. We offer full-service property management in Ellsworth, with the goals of minimizing expenses, increasing revenue, and safeguarding the value of your investment for the long term. Please email or call us at 207-561-7482 to learn more about our property management offerings.
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.
