Wouldn’t it be great if homeowner’s insurance premiums were tax deductible? Unfortunately, in most cases, they are not. Even if you incur property losses, they are probably not tax deductible, even if they were covered by your homeowner’s insurance policy.
There are a few exceptions that allow you to deduct a portion of your homeowner’s insurance premium on your taxes. For example, if you own a business, you may be able to deduct a portion of your home for business purposes. You may also be able to deduct a portion of your monetary losses if you home is destroyed or damaged in a federally-recognized natural disaster. Private mortgage insurance (PMI) may also be deducted from taxes.
If you own a rental property, you may be able to deduct insurance premiums on your federal taxes as they are considered business expenses, and write-offs are often available for these types of costs. If you own and rent a property that isn’t connected to your personal home, you may be able to write off the entire cost of the homeowner’s insurance policy covering that rental unit.
While these deductions may sound nice, keep in mind that additional insurance coverage may be required if you are running a business out of your home. The added cost of insurance may negate any tax savings you may realize, but it’s still good to know your options when tax time comes around.
When you’re ready to adjust your homeowner’s insurance, give us a call! We’ve been helping clients save money and protect their homes for decades. Our team can make the insuring process smooth and painless so that you can live worry-free. To reach us by phone, call (715) 754-5254 or (920) 822-3695. You can also email us at insurance@premiercommunity.com or visit www.yourpremierinsurance.com to learn more.