If you’ve ever bought a house, you’ve probably heard of homeowner’s insurance. This sort of insurance often covers damage to the home and personal possessions included within it, liability claims against the homeowner, and loss of use of the property as a result of a covered occurrence. Landlord insurance, on the other hand, covers the specific hazards of renting out a property. This includes tenant-caused property damage, rental income loss as a result of property damage or tenant eviction, and liability claims resulting from tenant injuries 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 may assure that you are entirely safe. Landlord insurance is intended 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 protects against are as follows:
- Landlord-owned personal property used to maintain or service the rental property, such as appliances or equipment.
- 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 Mid Peninsula sympathizes with the importance of safeguarding your investment. We can assist you in locating the appropriate insurance policy to ensure that you and your residents are adequately protected against the unknown. Our complete Pacifica property management services are designed to keep your costs low, profits high, and your real estate investment safe for years to come. For more information on our property management services, please contact us online or call 650-696-1800 today!
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.