Homeowner’s insurance is a type of insurance that is commonly purchased by individuals who own a home. Home insurance usually provides coverage for various types of damage to your home and personal belongings, legal claims made against you as a homeowner, and expenses incurred due to the inability to use your home because of a covered event. Landlord insurance is designed to cover the specific risks that come with renting out a property. The potential risks for property owners include damage to their property caused by tenants, loss of rental income due to property damage or tenant eviction, and liability claims resulting from tenant injuries or property damage.
Investment owner/landlord insurance provides protection against the potential liabilities of renting out your property. Landlord insurance can provide comprehensive protection for owners of rental properties. Landlord insurance is a type of insurance policy that is specifically designed for rental properties that are not occupied by the owner. It provides coverage for certain features of your rental property that may not be covered by other types of insurance policies. Landlord insurance covers certain things, such as:
- 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.
Reviewing the terms of a landlord insurance policy is crucial. To prevent unexpected fees or surprises during a claim, it is important to have a clear understanding of the terms outlined in your insurance policy. It is important to understand the coverage details, limitations, or exclusions that may be applicable.
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 One Source acknowledges the significance of safeguarding your investment. Our services include guiding you to select the appropriate insurance policy that will ensure you and your residents are adequately covered against unforeseen events. We offer McKinney property management services that aim to minimize your expenses, increase your earnings, and safeguard your real estate investment for the long term. To learn more about our property management services, you can either contact us online or call us at 214-721-0727.
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.
