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.

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.

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.

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.

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.

Your Houston Multifamily Insurance Should Cover Swimming Pools, Here’s Why

Swimming Pools Can Greatly Impact Your Houston Multifamily Insurance

You Cannot Assume Your Houston Multifamily Insurance Will Cover All Aspects Of Your Swimming Pool

One aspect of Houston Multifamily Insurance you need to be aware of is swimming pools.   In the hot weather, swimming pools are in high demand, however they can also pose a major liability if you do not utilize the best practices.

Swimming Pools And Houston Multifamily Insurance Liability

The primary aspect of swimming pools and insurance that you need to know is that many of the risks can be mitigated in order to get the best ROI on your multifamily real estate investment.  For example, if Your Property Has a Pool, You Must Ensure That:

  • The pool has a fence of at least 4 feet tall
  • Safety Equipment Is Up-to-Date
  • Flotation Devices Are Available 
  • Pool Rules Must Be Posted (Ex. time)

    These work very well to not only ensure that the pool is properly maintained, but it also works to minimize potential problems before they happen.  For example, if you have rules posted with specific hours, then it is less likely that a  tenant can open up a lawsuit if they use the pool after dark and then suffer some sort of injury.  As a multifamily real estate investor, you want all aspects of your property to be well maintained, especially the pool area.

What Your Houston Multifamily Insurance Should Include

If you do have a pool and you want to make the best use of your Houston Multifamily Insurance policy then you may want to consider liquor liability if your tenants can have alcohol around the pool.  This would also help to minimize potential risks if a tenant suffers an accident while drinking.

The overall key is to make the best use of your Houston Multifamily Insurance policy by alleviating any potential risks associated with swimming pools.

 

Your Real Estate Investment Insurance May Be Affected By Building Components

Are Your Real Estate Investment Insurance Rates High?

Did You Know Your Real Estate Investment Insurance Rates May Be Affected By Building Components?

Have you gotten a Real Estate Investment Insurance quote that seems a little higher than normal?  Or, are you shopping for insurance rates and need  to know what the comparable rates might be?

Why Real Estate Investment Insurance Is Importance

You know that you NEED insurance, but why is it so important that you have it?  Because anything can happen!  If your real estate investment goes through a flood, and you later rent it out.  Will your tenant then complain of mold issues?  Insurance acts as a type of buffer to protect you and your assets.

That is also why it is important to get the best insurance rates possible.  The key is to keep rates low while still offering you viable protection.

How Building Components Affect Real Estate Investment Insurance

The construction elements of a building are extremely important when it comes to a real estate investment.  As previously explained, components such as the type of building (brick for example), plumbing, electrical, and other aspects of construction will all determine what insurance rates you might see.

The same is true for wiring.  Depending, on what type of wiring you have in your real estate investment property, you may be paying MORE for insurance?

That is because copper wiring has become the preferable industry standard. That means if you have aluminum wiring, then you may not even be covered for insurance, and if you are, you will pay out more in insurance.

Install Security Cameras For Better Assault And Battery Insurance Coverage

You Need Better Security For Assault And Battery Insurance Coverage

Your Assault And Battery Insurance Coverage Can Be Affected By Your Own Efforts

Do you have the right Assault And Battery Insurance Coverage for your multifamily property?  Anything can happen at a multifamily building; no matter what location it resides in and the type of tenants you might have there.  Crime essentially occurs everywhere, and no property is completely immune to problems that may occur.

What Is Assault And Battery Insurance Coverage

This type of coverage essentially protects you from any act of violence that occurs on your real estate property.  Fighting, shootings, and stabbings can all create major liabilities, and potential lawsuits.  This not only costs you time, but also money.  As a real estate investor, this type of coverage allows you to better protect your multifamily investment.

How Security Cameras Help Assault And Battery Insurance Coverage

The type of crimes that occur and their severity can greatly differ.  For example, a fist fight can break out between tenants, which may render hospital visits for both parties, or a break-in occurs that results in the death of the tenant.  There can even be more heinous and unfortunate instances that can not only have long lasting implications for the reputation of the property, but you may also be held liable.

That is why security is a must-have investment for any multifamily property owner. Security measures can include security cameras, gates, patrol, and so forth.  Not only does this create an actual record of what has occurred, which can minimize liabilities later, but they can sometimes be a deterrent to crime altogether.

You NEED A Commercial Property Liability Insurance Quote If You Have These Building Components

You Need To Get A Commercial Property Liability Insurance Quote

A Commercial Property Liability Insurance Quote WILL Protect Your Investment

Getting a commercial property liability insurance quote is essential in protecting your investment.  That is because, construction Liabilities can really matter when it comes to insurance rates.   Thus, if you are a real estate investor, you need  to know all aspects of the structure of the property.

Why Do You Need A Commercial Property Liability Insurance Quote

Construction elements are essentially the building materials that went into the construction of your real estate property and will then determine what kind of insurance rates you will see.  This is because certain building elements, such as the type of plumping you have in your real estate home, can be rated higher or lower than others.

That means if something were to happen with your real estate investment property, then you may be held liable!

What Should You Consider When Getting A Commercial Property Liability Insurance Quote

Quite frankly, building components will  matter because they will determine what type of insurance rates you will see, no matter what the construction element is.

For example, a brick veneer building will warrant a better rating, as opposed to other types of building materials, especially depending on the masonry involved.  This is simply because some building construction materials are hardier than others, are more sustainable and long lasting, and essentially, are less prone to damage.

The same would be true of central heating, which typically rates higher and thus, offers you a more comparable rate. Other building elements that make an impact are the type of window units, plumbing, and so on.

It is important that you know what construction elements went into your building so you can get the best rate possible.

Property Type Crime Rates Affect Your Insurance Rates

What Type Of Property Is Your Real Estate Investment?

Knowing The Answer Will Determine What Kind of Crime Rates You Will See, Impacting Your Insurance Rates!

Did you know that property type crime rates will determine what insurance rates you get?  Real estate investments come in all shapes and sizes, as well as different types.

What Are Property Type Crime Rates?

Your type of property will determine the crime rates you will see.  For instance, if you are housing students, what type of issues could they potentially run into?  There is no doubt that this would be different than section 8 housing or assisted living.  No matter what type of property you have, you must also consider crime rates.

As a real estate investor, you must consider all aspects of your investment, not just the physical aspects of the property.

How Property Type Crime Rates Affect You

The types of crime will not only differ from area to area, and from type to type, but they will also vary in their level of intensity.  For instance, section 8 housing may warrant more violent crimes than assisted living facilities.  It is equally possible that you may pay higher in insurance, depending on how high the crime rate is.

When shopping for insurance, know your property type. That way you will not only know what type of crime might surface, but you will also have an idea of what the comparable insurance rates might be.