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Deductions

Are insurance premiums deductible on a rental property?

Landlord premiums are current by coverage period, with mixed-use allocation and claim reimbursements kept straight.

7 min read

Short answer

Yes, premiums for insurance covering a rental are generally deductible. The deduction follows the coverage period, and only the rental share counts. Insurance for lost rent, liability, fire, flood, and landlord coverage can qualify.

Yes, premiums for insurance covering a rental are generally deductible. The deduction follows the coverage period, and only the rental share counts. Insurance for lost rent, liability, fire, flood, and landlord coverage can qualify.

The expense-specific result is below. The shared BAR test, de minimis safe-harbor rule, and source guide live on the deductions hub so they are not repeated on every expense page.

A worked classification for insurance premiums

A landlord pays $1,800 on July 1 for 12 months of coverage. Six months, or $900, belongs to 2025 and six months to 2026. If 20% of the building is personal use, only 80% of the rental share is considered.

Records that support this treatment

Keep policy declarations, invoices, payment proof, coverage dates, allocation workpapers, and claim statements. The annual rental portion should reconcile to line 9.

Keep the invoice, the decision, and the Schedule E placement together. The broader rental property deductions guide and the Schedule E walkthrough cover the full return.

This is general information for organizing rental records, not tax advice. Elections, entity structure, mixed use, and the exact unit of property can change the answer. Bring the invoice and the underlying facts to a CPA before filing.

Questions landlords actually ask

Is insurance premiums deductible on a rental property?
Yes, premiums for insurance covering a rental are generally deductible. The deduction follows the coverage period, and only the rental share counts. Insurance for lost rent, liability, fire, flood, and landlord coverage can qualify.
Where does insurance premiums go on Schedule E?
Rental insurance premiums go on Schedule E line 9.
What happens if insurance premiums must be capitalized?
Insurance itself is not a depreciable asset. Premiums directly tied to construction or acquisition may be capitalized into the project under separate capitalization rules, but an ordinary annual landlord policy is a current expense. No MACRS schedule applies to an ordinary policy. A prepaid premium is allocated over its coverage term.