Is Title Insurance Tax Deductible On Rental Property?

Is Title Insurance Tax Deductible On Rental Property?

Here's What You Need To Know About Insurance Deductibles

If you are a real estate investor, then you have most likely found yourself asking, "Is Title Insurance Tax Deductible On Rental Property?"  To answer that, one must consider the many nuances that effect insurance in the first place.

Back to the question:

Is Title Insurance Tax Deductible On Rental Property

The short answer is no.  However, before delving into that, one must be aware of the many nuances that can affect insurance rates when it comes to rental property.  For example, did you know that the type of building materials your rental property has can greatly impact what insurance rates you might see.

Another example is where the property itself is located.  Did you know that different locations can also come with different insurance rates?  This is largely because the rate of risk is perceived to be higher.  Thus, it is important that your insurance agent asks the right questions before any kind of paperwork is signed. 

Why Isn't Title Insurance Tax Deductible On Rental Property

Quite simply, this is because only interest and real estate taxes are deductible for a rental property.  Aspects like transfer taxes, title insurance, legal fees, recording fees, surveys, and so forth all become a part of additions to the basis in the property.  Essentially adjustments.

This is information that your insurance agent should not only know, but should also be willing to talk out with you.

Get the right insurance for your investment! 

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.

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.

Claims History, Why This Matters In Real Estate Insurance

WHY IS THE CLAIMS HISTORY IMPORTANT?

CLAIMS HISTORY ALLOWS YOU TO KNOW WHAT POTENTIAL DAMAGES YOU MIGHT BE IN FOR REGARDING A PROPERTY.

Did you know that claims history is one of the most important need-to-know aspects of buying a property?  Whether you are a real estate investor who wants to flip the property,  to rent it out, or simply have the property as a future viable investment; you are going to need to know the claims history of the property to make a better, more informed decision.

The Importance Of Claims History

In the most basic sense, a claims history will let you know what types of claims have been made on that particular property.  For example, if the property is in a Hurricane-prone location, then it is very possible that the house has seen claims made regarding flooding, wind and hail damage, and so forth.  That means if the house has already suffered through flooding, and resulting damage from that, would it be possible that there might be mold issues in the future?  While this may not necessarily be the case, it is possible given the property's history.  As a real estate investor, you need to be aware of any potential liability in order to better protect yourself and your assets and know the details of your investment.

The C.L.U.E. Report, A Way To Your Property's Claims History

Real estate investors need to be aware of what they are buying, period.  The C.L.U.E. Report allows you to get a 'clue' by alerting you to the general history of the property, including any past claims that have been made.  As mentioned, this can protect you and your investment in the future.
When it comes to real estate insurance, claims history is an invaluable tool that will help you better prepare for the future, allowing you to make a smart, informed real estate investment decision.

Flipping Houses? Then You NEED Contractors General Liability Insurance Coverage

Do You Have Contractors General Liability Insurance Coverage?

Contractors General Liability Insurance Coverage Will Help PROTECT Your Investment!

To start, one thing that investors do not realize when flipping houses is that, by default, they become general contractors. They are the ones who will be subcontracting all work for the property. This means that if they do not have contractor liability then they could potentially be left exposed. Moreover, one has to be extremely mindful about who they hire and what kind of coverage is had over the project as a whole. In addition, the structure should also be insured after the fact. Here's what you need to know:

What Is Contractors General Liability Insurance Coverage

True to what it sounds like, contractor liability protects you and your assets in the event that the contractor is negligent or does not do their due diligence in regards to work performed on the property.  For example, if the contractor is supposed to use copper wiring, but fails to do so, then you may be denied insurance altogether.  Or, suppose that the contractor does an adequate job on the surface level, but there is some misstep along the way and later on down the line, your tenant, or the home buyer gets hurts and sues.  Since you do not have contractor liability, then you could be the one found solely responsible.  This why is why contractor liability, is so important when flipping houses, even if you have general real estate insurance.

Why You NEED Contractors General Liability Insurance Coverage

As mentioned previously, having contractor liability ensures that you and your assets are protected, especially if the contractor you hired did not do an adequate job on your property.  On a construction site, anything can go wrong and thus, it is imperative that you protect your real estate investment.

Flipping houses can be extremely rewarding as the return on investment can be high.  However, if you do not have contractor liability then you can find the risks to be even greater.  Ensure that your investment is covered. 

2 Multifamily Insurance Exclusions That All Investors Should Know

Are You A Real Estate Investor Shopping for Multifamily Insurance?

Real Estate Agents Who Invest In A Multifamily Dwelling NEED The Right Multifamily Insurance

Are you a real estate investor with a multifamily dwelling in your portfolio? Then you NEED multifamily insurance. In addition, there are two specific exclusions that you may need to look for when you are purchasing a new property.

Multifamily Insurance Exclusion #1 - Assault and Battery

Did you know that general liability insurance is not enough to cover a fight, an assault, an altercation, shooting, or even a dead body on the premise.  Although, you may believe that these kinds of problems may not happen on your multifamily property - know that they can happen anywhere.  In addition, you must also think of the litigation and potential lawsuit that may follow these types of insurance claims.  For example, we once saw a case in which a multifamily property owner was sued because of improper lighting, after a fight broke out, and inevitably they won.  However, the insurance would not cover because the multifamily owner did not have assault and battery coverage.  If you are not protected with the right insurance, you can find yourself liable.

Multifamily Insurance Exclusion #2 - Standalone Dog Policy

In a similar vein, if you do not have a standalone dog policy then you could be potentially left exposed.  Quite simply, if you are going to allow tenants to own dogs, no matter what the breed, then you would be left exposed.  Also keep in mind that service animals are legally allowed, even if they are a type of bull breed.  That means if the tenants' dog bites another resident, or a visitor, you can be sued by the victim.  There have been cases in which a multifamily investor has been sued over a dog attack and insurance did not cover the resulting damages.  Thus, when getting multifamily insurance, your agent needs to know what would be best for you and your investment.

Knowing the above exclusions is only part of the process of getting multifamily insurance that helps your investment. Secondary would require finding the right insurance agent. At Benchmark we make it easy to shop for insurance and find the rates that work best for you.

What to Consider When Choosing Multifamily Properties

ARE YOU A MULTIFAMILY INVESTOR?

Are you looking to grow your real estate portfolio quickly? Multifamily investments are not only a great investment, but they can work to expand your portfolio very quickly. Moreover, they can often have long term value as well. However, there is no doubt that this type of investment can sometimes be seen as complex and navigating them can be difficult if you are not sure what considerations to make.

If you are thinking about a multifamily property, or you already have this type of real estate already in your portfolio, here are a few things you should consider: