Is homeowners insurance a deductible expense for a rental or business?

Rental property

Landlord or dwelling fire policy premiums, including fire, wind, liability and flood coverage, are ordinary rental expenses. If you prepay a policy that covers more than one year, you generally deduct each year's share in the year it applies. Your deductible on a rental claim and the uninsured part of repairs are usually treated as repair expenses or capitalized, depending on what the work was.

Renting part of your home

If you rent out a room or a basement apartment, you can generally deduct the rental share of your homeowners premium, based on square footage or another reasonable method.

Home office

Self-employed people who qualify for the home office deduction can include the office's percentage of homeowners insurance. Employees working from home for an employer generally cannot.

Things that are not deductible

• Premiums on your primary home or second home used personally.
• Your claim deductible on your own home, except within casualty loss rules for declared disasters.
• Private mortgage insurance follows its own rules, which have changed over the years. Ask a tax professional.

Roof age affects landlords too

Insurers price rental homes with older roofs higher, and some will not write them. A roof replacement on a rental is generally depreciated over 27.5 years rather than deducted at once. See roof age and insurance.

This is general information, not tax advice. Confirm the details with a tax professional.