If you’ve ever bought a house, you probably know a little bit about homeowner’s insurance. Most of the time, this type of insurance includes damage to the home and personal items inside it, liability claims against the homeowner, and loss 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 includes 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 caused by the tenant.
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 protect you totally. 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.
It is very important to look over a landlord insurance coverage in detail. If you know the policy’s terms, you won’t be surprised by fees or charges when you make a claim. Know what is and isn’t covered and if there are any limits or exceptions.
Landlord insurance payments may be able to be deducted from a landlord’s taxable income because they are a cost of owning a rental property. But the rules for what can be deducted can be hard to understand, and the amount can be limited by other things. If a landlord wants to know if their insurance premiums are tax-deductible, they should talk to a qualified tax professional or look at official IRS advice.
We know how important it is to protect your investment at Real Property Management Bozeman. We can help you find the right insurance coverage so that you and your residents are protected from the unknown. Our complete Gallatin Valley property management services are made to keep your costs low, increase your earnings, and protect your real estate investment for years to come. Contact us online or give us a call at 406-586-2226 to find out more about our property management services.
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.