Michigan Lessors Risk Only (LRO) Insurance

Lessors risk insurance is a form of supplementary business insurance designed to protect property owners and landlords in Michigan from the risks associated with leasing out their property. It covers losses due to theft, vandalism, fire, storms, and other accidents or occurrences that can damage the asset and/or cause financial loss. The policy also provides coverage for legal costs if a tenant or other party takes legal action against the property owner. If you own rental property in Michigan, understanding and purchasing lessors risk insurance can provide an extra layer of protection for your investments.

Generally, any Michigan property owner who is leasing out their property or offering short-term rentals should consider purchasing lessors risk insurance. This includes owners of residential and commercial properties, as well as:

• Senior living facilities
• Hotels and motels
• Apartment complexes
• Vacation homes
• Single-family dwellings
• Bed and breakfasts
• Student housing
• Condominiums
• Industrial buildings
• Warehouses
• Retail spaces
• Office buildings
• Car rental companies
• Manufactured housing communities
• Storage facilities

Other types of business owners may also benefit from purchasing lessors risk insurance in Michigan, as the policy can provide coverage for legal costs associated with tenant disputes.

When choosing a lessors risk insurance policy, it’s important to understand exactly what type of coverage is offered by different companies and policies. Generally, lessors risk insurance covers loss due to theft, vandalism, fire, storms, flood, and other accidents or occurrences that can damage the asset and/or cause financial loss. It may also provide coverage for legal costs if a tenant or other party takes legal action against the property owner. Typical coverage includes:

1. Property Damage: Provides coverage for any physical damage to the property caused by perils such as fire, theft, or vandalism.
2. Liability Coverage: This may provide liability insurance in the event a tenant is injured on the premises.
3. Loss of Rental Income: If the damage to the property renders it uninhabitable, this coverage will provide protection for any lost rental income.
4. Legal Expenses: Offers coverage for legal costs such as attorney fees and court costs if a tenant or other party takes legal action against the property owner.
5. Equipment Breakdown: Coverage for losses due to mechanical failures or electrical breakdowns of equipment on the property.
6. Leasehold Interest Coverage: This provides coverage for loss due to a tenant’s failure to make rent payments or other contractual breaches of their lease agreement.
7. Tenant Discrimination Liability Insurance: Provides protection in the event that an owner is accused of discriminating against a tenant based on race, religion, gender or disability.
8. Pollution Liability Insurance: Offers coverage if the property owner is held legally responsible for any environmental contamination on the premises due to their activities or those of a tenant.
9. Flood/Earth Movement & Windstorm Deductibles: Covers losses caused by floods, earth movement, and high winds.
10. Rental Guarantee Insurance: Offers protection in the event that a tenant fails to pay their rent or breaches other terms of their lease agreement.
11. Cyber Liability Insurance: In some cases, this coverage may be included and provides protection from legal expenses related to data breaches or cyber-related incidents.
12. Construction Defects: Coverage for losses due to construction defects on the property.
13. Tenant Liability Insurance: Offers protection in the event that a tenant is held liable for any damage they caused to the property.
14. Tenant Eviction: Offers coverage for expenses related to the eviction of a tenant from the property.
15. Employer’s Liability Insurance: Provides protection for an owner in the event of legal action taken against them by their employees.

Overall, lessors risk insurance can provide peace of mind and financial protection for property owners in Michigan.

The cost of lessors risk insurance policies in Michigan varies depending on the coverage limits, deductible amount and type of property being insured. Generally speaking, the higher the coverage limits, deductible amount and type of property, the higher the premium.

When shopping for a lessors risk insurance policy in Michigan, it is important to understand your coverage needs and shop around to find the best value. Here are seven tips for finding the right policy:

1. Determine your coverage needs – Are you looking for a policy to cover buildings, contents, or furniture? How much coverage do you need?
2. Know your deductibles – Make sure you understand what amount of money will come out-of-pocket before the insurer covers its portion.
3. Check the limits – Many policies have limits on how much they will cover, so make sure you understand the limits of your policy.
4. Research policies – Compare different policies and coverage options to find one that meets your needs and provides the best value.
5. Ask questions – Don’t be afraid to ask questions of your insurer or agent in order to ensure you understand what is covered and what is not.
6. Review the policy – Read the policy carefully before signing to make sure you understand all of the coverage offered.
7. Stay informed – Keep up-to-date on changes in Michigan’s insurance laws to ensure that your policy remains current and compliant with state regulations.

By shopping around and understanding your coverage needs, you can find the right lessors risk insurance policy to protect your investments in Michigan.

Working with a lessors risk insurance agency can be beneficial for Michigan landlords. Here are five of the biggest benefits:

• Expertise – Insurance agents have knowledge and expertise regarding the different types of coverage available and can help you find a policy that fits your specific needs.
• Cost savings – Agents have access to multiple providers and can help you find the best deal on your insurance policy.
• Coverage options – Agents can provide you with different coverage options and help you decide which ones are best for your property.
• Risk assessment – Agents can assess the risks associated with your rental property and help you determine what type of coverage is needed to protect it.
• Claims assistance – If a claim is filed, an agent can assist with the process and help ensure that you get the compensation you deserve.
• Dedicated customer service – Agents are devoted to providing excellent customer service and can answer any questions you may have about your policy or coverage.
• Peace of mind – With an insurance agent on your side, you’ll have peace of mind knowing that you have the right protection in place for your rental property in Michigan.

By working with an experienced lessors risk insurance agency, landlords in Michigan can be sure that their coverage needs are met and their property is protected.