Can you deduct homeowners insurance?
What is and is not deductible
- Personal home premiums: not deductible. IRS Publication 530 lists homeowners insurance among homeowner costs you cannot deduct.
- Rental property premiums: deductible as a rental expense.
- Home office: the business-use percentage of the premium can be an indirect expense if you qualify.
- Mortgage escrow: paying through escrow does not change the answer.
- Mortgage insurance: a different product with its own rules; check current IRS guidance for the tax year.
What about the deductible on a claim?
Your insurance deductible is not deductible on a personal home except as part of a qualifying casualty loss from a declared disaster, which IRS Publication 547 explains. In Georgia, a contractor cannot pay, waive, or rebate your deductible either, so plan for it in cash. See can a roofer pay your deductible.
Ways to lower the premium instead
Since you cannot deduct it, the savings have to come from the policy itself: a newer roof, impact-resistant shingles where your insurer offers a credit, a higher flat deductible you can actually afford, or bundling. Be careful trading into a percentage wind and hail deductible to save premium; on a $400,000 dwelling limit, 2 percent is $8,000 out of pocket after a hailstorm. See percentage wind and hail deductibles and roof age and insurance.