By Team Member | July 17, 2020

Are Homeowners Insurance Payouts Taxable?



Hi, this is Jon Sostad with Insurance Connection in Kearney, Nebraska. We’ve had a question posed from a few people asking if homeowners insurance claims are taxable. When you get a payment for repairs to your roof, or any storm damage, or if something gets stolen as far as personal property and then you get a claim settlement, that’s great that your insurance works like you expected it to. But a lot of people wonder if they have to keep out some of the proceeds in order to pay taxes on that. Since you’re not profiting from the insurance payout, then you don’t [inaudible 00:00:39] it to any taxable income. Your benefits are reimbursement expenses in lieu of income. So you don’t need to report it to the IRS. I hope this helps, have a great day. Thank you.

Call Insurance Connection Inc. in Kearney NE at (308) 237-0914