Homeowner’s insurance is an example of a protection that you may have encountered if you have ever purchased a house before. Home insurance usually provides coverage for various types of damages to your home and personal belongings, as well as liability claims against you as a homeowner. Additionally, it may cover the expenses incurred due to the loss of use of your home caused by a covered event. Landlord insurance is a type of insurance that offers protection against the specific risks that come with renting out a property. The potential financial losses that landlords may face include property damage caused by tenants, loss of rental income due to property damage or tenant eviction, and liability claims arising from tenant injuries or property damage.
Investment owner/landlord insurance offers defense from the potential risks and liabilities of renting out your property. Landlord insurance can provide complete protection for owners of rental properties. Landlord insurance is a type of insurance policy that is specifically designed for rental non-owner-occupied properties. 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.
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.
At Real Property Management Commonwealth, 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 Cambridge 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 617-299-2342 today!