Taxes and home insurance
Looking for ways to save money at tax time? You’re not alone. Many homeowners wonder if they can write off their insurance premiums, but in most cases, you can’t. Homeowners insurance is usually considered a personal expense, which means it’s not tax-deductible. That said, there are a few exceptions where you might be able to claim a deduction.
💡 For personalized tax guidance, it’s always best to consult a tax professional.
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How tax deductions work
Deductions reduce your taxable income, which can lower how much you owe the IRS. There are two main types:
- Standard deduction: A fixed amount based on your filing status. Most people use this.
- Itemized deductions: Specific expenses like medical bills or charitable donations. If these add up to more than the standard deduction, itemizing could save you more.[1]
Mortgage insurance vs. home insurance
Although easy to confuse (especially if you're a first-time homebuyer), these two types of insurance are very different. Here's a quick rundown to help distinguish the two:Â
Mortgage insurance
Purpose: Protects the lender, not you.
- Required if you put down less than 20–25% on a home
- Helps the lender recover losses if you stop making mortgage payments
- Can usually be removed once you reach enough equity in your home
Home insurance
Purpose: Protects you, the homeowner.
- Covers damage to your home and belongings (e.g., fire, storms, theft)
- Includes liability coverage if someone gets hurt on your property
- Can be customized with add-ons for specific risks (like water backup or high-value items)
When homeowners insurance may be tax-deductible
While personal homeowners insurance usually isn’t tax-deductible, there are a couple of exceptions where it might be:
- Rental properties:
If you own a rental property, the insurance premiums you pay for it are typically tax-deductible. That’s because they’re considered business expenses. This includes:- Coverage for damage to the rental unit
- Liability insurance that protects your personal assets
- Insurance covering employees related to your rental business
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Home office deductions:
If you're self-employed or run a business from your home, you may be able to deduct a portion of your homeowners insurance. This applies to the part of your home used exclusively for business purposes, as long as it meets IRS guidelines for a home office deduction.
What if you itemize deductions?
It’s a common assumption, but no, itemizing your deductions doesn’t make homeowners insurance deductible. That’s because the IRS classifies it as a personal expense, not one that qualifies under itemized deductions.
The only time it might come into play is if a portion of your home is used for something beyond personal use, like business, rental activity, or medical accommodations. In those cases, a percentage of your insurance costs might qualify.
Home-Based Business Insurance: What to Know | The Zebra
Homeowners insurance offer limited coverage for home-based businesses. Explore options like endorsement or separate business policies to protect yourself.
Properties impacted by disasters
If your home is damaged in a federally declared disaster and your insurance payout doesn’t cover all the costs, you may be able to deduct the uncovered portion on your taxes.
A federally declared disaster area is a region officially designated by the President after a major event—like a hurricane, wildfire, flood, or earthquake—that qualifies for federal aid. These declarations open the door to tax relief and other forms of support for affected homeowners.[3]
💡 Is flood or earthquake insurance tax-deductible?
No, flood and earthquake insurance premiums are not tax-deductible, even if you purchase them separately from your standard homeowners policy.
These types of coverage are often bought through government-backed programs or special insurers, especially in high-risk areas. But despite being outside your main policy, they’re still considered personal expenses, which means they don't qualify for a tax deduction.
Tax tips for homeowners
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Home office? You may be able to deduct part of your insurance, utilities, and maintenance.
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Renting out space? You can write off related insurance and business expenses.
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Paying mortgage interest? That amount might be deductible, especially early in your loan.
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Made health-related upgrades? Costs for ramps, railings, or similar changes could count as medical deductions.
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Paying property taxes? You can usually deduct up to $10,000 in state and local taxes.[4]
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Still paying private mortgage insurance (PMI)? You might qualify for a deduction based on your income.
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Not sure what applies? A tax pro can help you find every deduction you’re eligible for.
Best Home and Auto Insurance Quotes
Bundling can be a great way to save on insurance. Learn more about how to save by bundling your home and auto policies with one insurance company.
Finding cheap coverage
You might not be able to deduct homeowners insurance on your taxes—but you can still save money by finding a better rate.
Start by comparing homeowners insurance quotes from multiple companies. You can shop on your own, or let our agents at The Zebra help you find options that fit your needs and budget. Either way, it pays to explore.
Don’t overlook smaller or regional insurers—they often offer competitive pricing and great service, even if you’re not familiar with their name.
And remember: the cheapest policy isn’t always the best one. Be sure to ask questions, understand your coverage, and make a choice that truly protects your home.
Save on home insurance by comparing rates!
Home insurance tax FAQs:
About Schedule A, Itemized Deductions. IRS
Tax Tips for Employees Who Work at Home. Intuit turbotax
Tax relief for federally declared disaster areas. USA.gov
Tax benefits for homeowners. IRS
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.