Is Homeowners Insurance deductible?
A homeowners policy provides protection against possible damages to one’s home. A Homeowners Insurance deductible policy typically covers their driveway, fence and garden shed as well as their garage.
Coverage for Small Businesses Owners by Homeowners Insurance
Keep in mind that homeowners insurance can cover you for a few thousand dollars if you have a very small business like a lawn care or gardening company. You should check with your homeowner’s insurance company prior to starting a business on your property.
If your business is more than a small one, you will likely not be covered. You would need to purchase insurance specifically for the business.
You might need a commercial policy if you have a daycare or other business that you operate.
How homeowners insurance can be tax-deductible
Two special situations are however possible to deduct insurance payments from your house.
If you are using your home or a portion of it for business. You may be eligible to subtract the amount of business expenses from your home by taking the square footage of your qualified office space (or that part you have allocated for work in) as a percentage.
If you are a landlord, and your rental income comes from your home. The tax-deductible homeowner insurance policy on the rental property is the one you have. If you have several properties, and the rental income is your only source of income, then homeowners insurance on all properties becomes tax-deductible.