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\n <\/div>\n \n A quick (and free) way to check your home value<\/h3>\n
Get a preliminary home value estimate in as little as two minutes. Our tool uses information from multiple sources to give you a range of value based on current market trends.<\/p>\n \n
Editor\u2019s note: This post is for educational purposes, not tax advice. If you need assistance navigating tax deductions, HomeLight encourages you to contact your own advisor.<\/em><\/p>\n The phrase \u201chazard insurance<\/a>,\u201d typically refers to the portion of your homeowners policy that covers your house from physical damage caused by perils such as fire, hail, windstorms, and even crimes like vandalism or theft. Most policies have named \u201ccovered\u201d perils, and exclude perils caused by major natural disasters such as flooding and earthquakes. (More on this later in our post.)<\/p>\n It\u2019s helpful to note that hazard insurance is usually not a separate, stand-alone policy for most homeowners. This focused phrase is sometimes used by mortgage lenders when referring to insurance that protects the physical structure of a house rather than that portion of your policy that applies to liability losses, injury claims, or damage to your personal property.<\/p>\n Hazard insurance helps ensure that if a covered event damages your property, you won\u2019t bear the entire cost of repairs or rebuilding.<\/p>\n The deductibility of hazard insurance on your taxes depends on how you use the property. Here’s a breakdown of common scenarios:<\/p>\n In general, homeowners or hazard insurance premiums for your primary residence are not deductible<\/strong> on your tax return. The Internal Revenue Service (IRS) treats hazard insurance as a personal expense unless other factors are at play, which we\u2019ll describe below.<\/p>\n If you operate a business out of your home, a portion of your hazard insurance premium may be deductible<\/strong>. You can deduct the percentage of your home’s square footage dedicated to business use.<\/p>\n For example, if 10% of your home is used exclusively for your business, you might be able to deduct 10% of your hazard insurance premium. You\u2019ll want to keep detailed records to accurately reflect the business portion of your property. IRS Form 8829<\/a> can help you determine the allowable expenses for business use of your home on Schedule C (Form 1040).<\/p>\n Hazard insurance premiums for rental properties are typically considered business expenses and are generally deductible<\/strong> on your tax return. The same deduction allowance generally holds true for other expenses related to a rental home, such as the costs to advertise, maintain, or repair the property. Your insurance premium deductions can be claimed on IRS form Schedule E, Supplemental Income and Loss<\/a> (insurance line 9 of part 1).<\/p>\n Keep all receipts and documentation related to your rental property, including hazard insurance policies and payments.<\/p>\nWhat is hazard insurance?<\/h2>\n
Is hazard insurance deductible on taxes?<\/h2>\n
The home is your primary residence<\/h3>\n
Part of your home is used for your business<\/h3>\n
The home is a rental income property<\/h3>\n
Your home was impacted by a federally declared disaster<\/h3>\n