If you’ve ever bought a house, you certainly know quite a bit about homeowner’s insurance. Most of the time, this type of insurance encompasses damage to the home and personal items inside it, liability claims against the homeowner, and the absence 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 consists of 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 inflicted by the tenant.
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.
Real Property Management Absolute acknowledges the significance of safeguarding your investment. We can offer you advice to help you choose the appropriate insurance policy, ensuring that you and your tenants are fully protected against unexpected events. Our all-inclusive Salem property management services are aimed at reducing your expenses, increasing your profits, and safeguarding your property investment for the long haul. To learn more about our property management services, kindly reach out to us online or give us a call at 603-242-2727 today!
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