Landlord Insurance: Is It Tax Deductible?

Landlord Insurance Is Deductible

Landlord insurance premiums are an allowable expense against your rental income. You can claim the full cost of insurance policies that relate to your rental property.

Types of Deductible Insurance

Buildings Insurance

Covers the structure of the property against fire, flood, storm, subsidence, and other damage. This is typically your largest insurance cost and is fully deductible.

Contents Insurance

If you let a furnished property, contents insurance covering your furniture and appliances is deductible.

Landlord Liability Insurance

Covers you against claims from tenants or visitors who are injured at the property. Fully deductible.

Rent Guarantee Insurance

Covers lost rental income if a tenant stops paying rent. The premium is deductible as a property expense.

Legal Expenses Insurance

Covers legal costs for disputes with tenants, including eviction proceedings. The premium is deductible.

Landlord Emergency Cover

Covers call-out costs for boiler breakdowns, plumbing emergencies, and electrical failures. Deductible.

What Is Not Deductible?

• Your home insurance on your own residence (unless it is a let property)
• Life insurance — this is a personal expense
• The insurance excess on a claim — however, repairs paid with insurance money are not deductible (as you have been reimbursed)

How to Record Insurance

Record the insurance premium as an expense in the tax year you pay it. If a policy spans two tax years, you can either claim it all in the year of payment or apportion it across the relevant years.

Keep copies of your insurance policy schedules and premium payment confirmations for at least six years.

Track your insurance costs alongside all other property expenses with Accounted.

---

Claim every insurance premium you are entitled to. Sign up for Accounted and let Penny categorise your landlord expenses correctly.