Opens in a new tab

Homeowner hazard insurance is crucial, but not tax deductible

March 2, 2013

A friend is having to deal with a cracked foundation, the result of years of Texas drought drying out and shifting the clay underneath her house.


Foundation crack

As a homeowner, I feel for my friend and the hassle and expense she's going through.

Here's hoping that her home insurance can help cover at least some of the repair costs.

As every homeowner knows, this policy is often a major expense. But if you've ever had a home calamity, as we did several years ago when our attic-installed (not our idea) water heater burst, you'll appreciate the coverage.

Even if you wanted to take a chance, if you have a mortgage, your lender usually requires that you get the policy.

And the tax news, which is today's Daily Tax Tip, is not good either.

Homeownership offers many tax breaks, but your property's hazard insurance coverage is not one of them.


The Internal Revenue Service specifically says you cannot deduct property insurance premiums.

I wish I had better news. But here's hoping the myriad tax write-offs for you abode free up enough cash so you can handle this home-related cost on your own without too much trouble.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment