Importance of Being Insured with an Investment Owner/Landlord Policy

If you have bought a house before, you might have a basic understanding of homeowner’s insurance, which usually safeguards your property and personal belongings, protects you against liability claims, and compensates for the loss of use of your home resulting from a covered event. Conversely, landlord insurance offers protection for specific hazards associated with renting out a property, such as damage caused by tenants, loss of rental income caused by property damage or tenant eviction, and liability claims arising 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 guarantee 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.

 

To ensure that you are well-prepared in the event of a claim, it is crucial to carefully examine the terms of your landlord insurance policy. By understanding the policy’s provisions, you can prevent any unforeseen costs or unexpected outcomes. Familiarize yourself with what the policy covers and what it does not cover, as well as any 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.

 

At Real Property Management Abound, 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 Broken Arrow 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 918-984-4433 today!