umbrella usually covers more than just your rental properties.
Tax Deduction
insurance premiums used for business purposes can be deducted from taxable income if the expense is "ordinary and necessary." Because landlords often have assets of high value as a result of owning multiple properties and umbrella insurance is helpful in protecting those assets, the cost of the insurance is often deductible. However, tax law requires that expenses only partially for business use can be only partially deducted. If half the items covered by your umbrella policy are rental properties, only half the premiums are deductible. Commercial umbrellas may be entirely tax-deductible.