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Is Hazard Insurance Deductible On Rental Property?

Is Hazard Insurance Deductible On Rental Property?

Knowing The Answer To "Is Hazard Insurance Deductible On Rental Property" Will Protect Your Investment!

As a real estate investor, you may be asking yourself, "Is Hazard Insurance Deductible on Rental Property."  This is because you want to not only protect your investments, but you also want to ensure that you are getting a return on it as well.  However, it is important that you know the full nuances of the question itself:

Is Hazard Insurance Deductible On Rental Property?

Before  we answer, it's important to know what hazard insurance is.  In short, hazard insurance is designed to protect you from the out-of-the-blue emergencies that can sometimes be destructive to property.

For example:

  • Flooding
  • Wind and Hail
  • Fire and Smoke damage
  • and so forth

All of the above can be detrimental to the property and pose significant risk, both to the occupant, but also to your investment as a whole.

Now Let's Answer The Question, "Is Hazard Insurance Deductible On Rental Property?"

The short answer is that no, it is not deductible on rental property because it is seen as a personal expense.  However, this does not mean that you, as a real estate investor, do not severely need hazard insurance.

In short, hazard insurance, along with many other types of real estate insurance, is designed to protect your investment.  Thus, even if it might not be deductible, it is still imperative that you get it.

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Multifamily Housing Insurance Will Help Mitigate Risks

Do You Have Multifamily Housing Insurance?

If You Do Not Have Multifamily Housing Insurance, Then Your Investment May Be At Stake!

Do you have multifamily housing insurance?  If you do not, and you are a real estate investor that focuses specifically on this market, then your investment may be at risk!  Here's why:

What Is Multifamily Housing Insurance?

True to what it sounds like, multifamily housing insurance is strictly for multi-resident properties, such as apartments.   This type of insurance is strictly for any issues that may be associated with a multifamily property, such as damage to the property directly.

This is different than other insurance types because it is highly specialized and applies to multifamily units, and the potential problems that they may bring.

Why Do You NEED Multifamily Housing Insurance

Anything can go wrong with a multifamily property.  We have seen the following:

  • Dog Bites
  • Drug Deals
  • Hoarders
  • Destruction of the property
  • and more!

All of these can carry serious liabilities that can potentially undermine your investment.   You need the RIGHT insurance in order to protect your investment.  If any of the above should happen, your tenant could not only potentially sue, but you could run the risk of paying out considerably.

For example, in one case of a dog bite, we saw a tenant sue and win a million dollar lawsuit because the investor did not have the right kind of insurance.

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Houston Multifamily Insurance Liabilities: Slips, Falls, And Bedbugs

If You're A Multifamily Real Estate Investor Then You Need To Be Aware Of Houston Multifamily Insurance Liabilities

Houston Multifamily Insurance Liabilities Can Include Bed Bugs, As Well As Slips And Falls

Houston Multifamily Insurance Liabilities can seriously impact your real estate investment.  Not only can they create a potential problem with the reputation of a multifamily property, making it harder to fill up capacity, but it can also lead to potential lawsuits as well.

Here's the ones you need to be aware of:

Houston Multifamily Insurance Liabilities:  Bed Bugs

Bed bugs can be an extremely problematic occurrence, as they are not only hard to treat once they make their presence known, but they can also be a major liability.  This can be especially true if the tenant claims that the bedbugs are a result of negligence by the property itself, such as failing to conduct routine insect sprays.

The primary goal for any real estate investor is to minimize risks as much as possible.  Thus, it is important for you to not only have the property sprayed regularly, but it is also necessary to keep all documentation to showcase the fact that you did your due diligence.

Houston Multifamily Insurance Liabilities: Slips and Falls

Another important liability to keep track of is slips and falls, which can occur because of a wet surface, stairs, and any number of hazards.  These can become major liabilities and can potentially lead to lawsuits, should the tenant become injured as a result.

The primary way to circumnavigate the potential for slips and falls is to ensure that the property is properly maintained and that signage is always posted, alerting tenants of any potential hazard.

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If You Do Not Have Assault And Battery Insurance, You May Suffer A HUGE Claim

Do You Have Assault And Battery Insurance Coverage?

If You Do Not Have Assault And Battery Insurance Coverage, Then You May Be Liable

When a multifamily insurance claim occurs, it can be extremely detrimental to your real estate investment,  why is why you NEED Assault And Battery Insurance Coverage.  Not only can it cause insurance rates to go up, but it can also result in lawsuits; both of which can cost you time and money.   Among those with the most impact are those associated with assault and battery.

What Does Assault And Battery Insurance Coverage Include

An assault and battery can include a shooting, a stabbing, a robbery, and any other violent act; whether between tenants or a visitor to the multifamily property.   As mentioned, this can result in higher insurance rates, legal liabilities, or an outright lawsuit.   While these are often based on the circumstances surrounding the assault and battery; they can still lead to a very serious multifamily insurance claim.  In turn, your multifamily real estate investment is at serious risk.

Getting The Most Out Of Your Assault And Battery Insurance Coverage

Unfortunately, shootings, stabbings, and other violent acts sometimes do occur on a multifamily property even with prevention measures in place.  However, the key is to not only ensure you have the best insurance possible, should a multifamily insurance claim need to be placed, but also to minimize risks through specific efforts.  This can include installing security cameras, having security gates, and so forth.

The goal is to protect your real estate investment as best as possible.

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Having A Dog On The Premise Can Become A Major Multifamily Insurance Liability

Don't Let Dogs Become A Multifamily Insurance Liability

You Can Prevent A Multifamily Insurance Liability By Getting Dog Bite Liability Insurance

Did you know  that dog bites can often become a HUGE multifamily insurance liability?  In fact, dog bites are one of the biggest insurance claims period.  It is imperative to understand why this is, and how you can work to prevent this type of multifamily insurance liability.

How Can Dogs Become a Multifamily Insurance Liability

On average, there are around 4 million dog bites a year in the United States alone.   Broken down, this is about $30,000 to $50,000 in monetary claims.  While the level of severity for dog bites can certainly differ, the above numbers reflect an estimation of a very serious problem.

It doesn't matter if the dog is a bull breed or a small toy dog - dogs can often become unpredictable.  If you do not allow dogs on the property, keep in mind that, if the dog is an assistance dog, then it will need to be allowed (even if it is a bull breed).  Thus, even if there are only a few dogs on the premise, this can be potentially problematic and raise the level of risk for your property.

Preventing A Multifamily Insurance Liability

The primary goal is to try to prevent lawsuits from springing up.  The best way to do to that is to invest in dog bite liability.  That way, should a dog unfortunately bite a tenant, you can better cover your assets.