No, typically, flood insurance on a personal property isn’t tax deductible. Personal lines insurance premiums, in general, are not tax deductible.
Flood insurance, along with premiums for other common forms of personal insurance like homeowners, don’t qualify as a tax-deductible expense. These include premiums for life, automobile, and home insurance. That being said, flood insurance premiums may be a tax deduction for commercial properties (i.e., real estate used for business purposes or generates rental income).
Exceptions for home-based businesses
While you usually can’t deduct the flood insurance on a personal home, you may be able to if you run a business out of your home. According to the IRS, explanation about use your home for business may make certain expenses deductible, including:
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Real estate taxes.
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Insurance.
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Mortgage interest.
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Rent.
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Utilities.
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Maintenance.
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Repairs.
You can’t deduct these expenses in their entirety – just the portion specific to your business. The IRS also lists six at-home business practices that make these deductions allowable. Ultimate, you’ll want to speak to your tax consultant to make sure you’re eligible to deduct any of your business expenses.
Why choose us for flood insurance?
Kin offers competitively priced flood insurance in Florida and Louisiana. Reach out to one of our insurance professionals today for a price quote. We make home insurance easy.
