If you own a rental property, it’s a good idea to have landlord insurance. This type of insurance is intended to help protect you from any major financial losses in the case of incidents occurring to or at your rental property. Some of these incidents include fire, storm damage, theft, and rent arrears.
Am I Required To Have Landlord Insurance?
You are not required by law to have Youi Landlord Insurance. However, we can’t stress enough the importance of getting this coverage. If your rental property endures $100,000 worth of damages due to a tornado, you will have to pay that out of pocket if you don’t have landlord insurance.
How Much Is Landlord Insurance?
The premiums you will need to pay for this type of insurance vary widely depending on a number of different factors. Some of these factors include:
- Geographical Location
- Age of Structure
- Security Devices Installed
- Sprinkler Systems Installed
- Condition of Existing Structure
- Size of Rental Unit
With many different factors at play, it’s hard to give even a rough estimate on what insurance may cost for your property. It’s a good idea to speak to a few different insurance companies to get quotes so you can get a general idea of how much insurance premiums will cost for your property.
Can I Deduct My Premium Payments On My Taxes?
Any insurance policies that are for the building, contents, or liability are tax deductible. Renting is considered a business and insurance for that business is considered a business expense.
What’s The Difference Between Property And Liability Coverage?
Your insurance policy will come with coverage for both property and liability. Both of these are necessary to protect your building and your money.
This insurance covers any damages that occur to your property. This includes both damages to the buildings or the contents in them that you personally own. This covers damage that can happen due to natural disaster, vandalism, theft, or tenants.
This coverage protects your assets from legal claims and lawsuits. In the event that someone gets injured on your property, you could be held liable for their medical costs. Liability insurance will cover those medical expenses if you are found liable for the injury. This will also cover damage that occurs to someone’s possessions while they are on your property if you are found at fault for the damage.