Importance of Being Insured with an Investment Owner/Landlord Policy

If you’ve ever purchased an investment property, you’re probably familiar with the concept of homeowner’s insurance. Damage to the property and personal belongings inside it, liability claims against the homeowner, and loss of use of the home due to a covered incident are all standard coverages for this form of insurance. Landlord insurance, on the other hand, covers the special risks that come with renting out a property. This includes tenant-caused property damage, rental income lost due to 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 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.

 

A careful evaluation of the terms of a landlord insurance policy is essential. Understanding the policy’s terms will help you prevent surprises or unexpected fees in the event of a claim. Understand what is and isn’t covered, as well as any limitations or exclusions.

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 Elevation understands 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 comprehensive Front Royal 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 540-409-5857 immediately!