If you’re a homeowner, you’re probably always looking for ways to save money. And if you’re like most people, you might wonder if your home insurance is tax deductible. Baldo-Downs Insurance LLC in Tuscaloosa, AL can give you general advice, but we recommend talking to a tax professional about your specific situation.
While there are some exceptions, in general, most homeowners in Alabama can deduct their home insurance premiums on their state income taxes.
There are a few things you need to keep in mind:
First, your policy must be effective on or after January 1st of the tax year for which you are claiming the deduction.
There are other requirements as well. For example, you can only deduct the amount of premium that exceeds 3% of your adjusted gross income. So, if your adjusted gross income is $50,000 and your home insurance premium is $1,500, you would only be able to deduct $450 ($1,500 – 3% of $50,000).
If you have any questions about whether or not you qualify for the deduction, we recommend speaking with a tax professional. They will be able to help you determine if you qualify and how much of a deduction you’re eligible for.
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While there’s no clear-cut answer as to whether or not home insurance premiums are tax deductible in Tuscaloosa, AL, it’s generally safe to say that most people will be able to take advantage of the deduction. However, there are a few requirements that must be met for you to qualify. If you have any questions about whether or not you qualify for the deduction, we recommend speaking with a tax professional before filing your taxes.
If you have questions about your home insurance policy contact Baldo-Downs Insurance LLC.
You get home insurance to protect your home. You may think you are completely safe, but the truth is, home insurance doesn’t cover everything that can happen to your home. Homeowners in Tuscaloosa, AL can count on Baldo-Downs Insurance LLC to give them the advice they need to make an educated decision regarding home coinsurance overage. Independent insurance agents work for their customers, not for one insurance company, and they have many carriers for you to choose from.
Things that home insurance won’t cover
Earth movement is exactly what it sounds like. The earth moves, and it damages your home. This includes things like earthquakes, mudslides, and sinkholes. Your traditional home insurance policy will not cover damage from these events. However, you can purchase an endorsement or a totally separate policy to protect yourself if you live in an area where these hazards are a potential problem.
Floods are a serious hazard in many parts of the country, and your home insurance will not cover flooding that results from surface water. This includes bodies of water that overrun their banks and tidal flooding. If, however, you have a busted pipe in your home, this is included with your home insurance policy.
Many different things can be considered owner neglect. If your home suffers termite damage, insurance doesn’t pay for that. You, as a homeowner, should have your home treated for termites. If your old roof leaks and damages your ceilings and home, it’s on you. You need to replace your old roof before it does damage. If, however, a hurricane blows off your roof and you suffer damage, that should be covered. You can’t control the wind and rain.
In Tuscaloosa, AL contact Baldo-Downs Insurance LLC when you are in the market for home insurance.