By Husam Mohammed | January 23, 2020

Are Homeowners Insurance Payouts Taxable?

Hassan Mohammed: Hi, my name is Hassan Lou Mohammed with Insurance Medics. It is a cool day here in South Florida. It actually feels like winter. Today’s question is, are homeowners payouts taxable? Homeowner payouts can mean basically claim dollars that are awarded to somebody after they file a claim. The answer to that question is no. Homeowner payouts or homeowner claim dollars are generally not taxable because they are used to indemnify you. They’re used to put you back to where you were, and not necessarily have an economic gain.
If you have any additional questions on this or have any concerns about your homeowners insurance, please give us a call.