No Insurance Coverage

• When you want to get a tax break for a fire loss, whether you have insurance coverage on the home will play a role in the process. Tax deductions are only allowed on losses that are not covered by homeowners insurance. If you are reimbursed for the fire damage by your homeowners insurance, the IRS does not allow for any tax deductions. If you are reimbursed partially for the loss, you may still be eligible for a partial deduction.