Is Landlord Insurance Tax-Deductible?
- Nate Jones, CPCU, ARM, CLCS, AU
- 23 hours ago
- 2 min read
If you own rental property, you already know that landlord insurance is essential for protecting your investment. But did you know it can also help you save money at tax time? Many landlords overlook this valuable deduction, missing out on potential savings that could improve their bottom line.
At Wexford Insurance, we provide tailored rental property insurance for all types of dwellings—from duplexes and condos to vacation homes and short-term rentals. In this blog, we’ll explain how landlord insurance qualifies as a tax-deductible expense and how to make the most of it.
What Is Landlord Insurance?
Landlord insurance, also known as rental dwelling insurance, covers property owners who lease out homes, apartments, or vacation rentals. It typically includes:
Property damage coverage (fire, storms, vandalism)
Liability protection (injuries or legal claims)
Loss of rental income due to covered events
Optional add-ons like flood, earthquake, or umbrella liability coverage
Is Landlord Insurance Tax-Deductible?
Yes - landlord insurance premiums are tax-deductible as a business expense under IRS guidelines. According to Section 162 of the Internal Revenue Code, expenses that are “ordinary and necessary” for operating a rental business can be deducted from your taxable income.
This includes:
Standard landlord insurance
Flood and earthquake insurance (if applicable)
Umbrella liability policies
Rent guarantee insurance
Workers’ compensation and health insurance for property staff
Private mortgage insurance (PMI), depending on income limits
How to Claim the Deduction
To deduct landlord insurance on your taxes:
Report rental income and expenses. Insurance premiums go on Line 9.
Keep Detailed Records
Save invoices, receipts, and policy documents. Bank statements alone aren’t enough proof must show the expense was business-related.
Prorate for Mixed-Use Properties
If you rent part of your primary residence (e.g., a basement apartment), you can deduct a portion of your homeowners insurance based on square footage.
Allocate for Multiple Properties
If you own several rentals, divide insurance costs appropriately and report them separately on Schedule E.
Why Choose Wexford Insurance?
At Wexford Insurance, we offer comprehensive rental property insurance that not only protects your assets but also helps you maximize tax benefits. Our policies are designed for:
Long-term leases
Vacation homes, cabins, and lake houses
Multi-unit dwellings (duplexes, triplexes, quadplexes)
Condos, townhomes, and single-family homes
Final Thoughts
Landlord insurance isn’t just a safety net—it’s a smart financial move. By deducting your premiums, you reduce your taxable income and improve your rental business’s profitability. Just be sure to keep accurate records and consult a tax professional if needed.
Wexford Insurance is here to help you protect your property and optimize your tax strategy. Whether you own one rental or a portfolio, we’ve got you covered. Contact now!
FAQs
Q1: Can I deduct landlord insurance if I own the property through an LLC?
Yes. The IRS allows deductions whether the property is owned personally or through a business entity.
Q2: What if I rent out part of my home?
You can deduct a portion of your homeowners insurance based on the rented space.
Q3: Where do I report landlord insurance on my tax return?
Use Schedule E (Form 1040), Line 9, to report insurance expenses.
