Importance of Being Insured with an Investment Owner/Landlord Policy

Homeowner’s insurance will be something you’ve probably heard of if you’ve ever bought a house. This sort of insurance often compensates the policyholder for financial losses incurred because of a covered occurrence, such as repairs to the home and its contents, legal defense costs, and rental housing. On the other hand, landlord insurance protects the landlord against the specific dangers that come with renting out a property. This entails responsibility claims resulting from tenant injuries or property damage, as well as loss of rental income as a result of tenant eviction 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 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’s important to read the fine print of a landlord’s insurance policy. In the event of a claim, you can save yourself time and money by familiarizing yourself with the policy’s provisions. Learn the limits and exclusions of your coverage, as well as what is and isn’t covered.

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.

 

We at Real Property Management Titan know how crucial it is to safeguard your financial commitment. We can point you in the direction of the right insurance policy, protecting you and your tenants from the unknown. We offer full-service property management in Chapel Hill, NC, with the goals of minimizing expenses, increasing revenue, and safeguarding the value of your investment property for the long term. Visit our website or give us a call now at 615-538-7711 to learn more about our property management offerings.