Insurance Built for Michigan Property Owners
Owning rental or commercial property in Michigan means dealing with rising premiums, tenant liability, harsh winters, and construction costs that have climbed sharply since 2022. Add short-term rentals, mixed-use buildings, and Metro Detroit’s aging housing stock, and the risk picture gets specific fast.
The right coverage protects the building, your liability exposure, and the income you’d lose if a covered event forced tenants out. The wrong program leaves gaps you don’t notice until a pipe bursts, a tenant slips, or the building sits vacant for 60 days.
Property Types We Cover
Every property type carries its own risk profile. Marcus works with property owners across Michigan to build coverage that fits how each property is actually used.
Single-Family and Small Rental Properties
Rentals with 1 to 4 units are typically insured with a dwelling policy, not a standard homeowners policy. Coverage protects the structure, your liability as a landlord, and the rent you lose if the property becomes uninhabitable after a covered claim.
Commercial Buildings and Mixed-Use Properties
Office buildings, retail storefronts, and mixed-use properties in Rochester, Rochester Hills, and Metro Detroit each carry different exposures. Coverage protects the building, the tenants’ business improvements you’re responsible for, and your liability if someone is injured on the property.
Short-Term Rental and Vacation Properties
Standard landlord policies typically exclude short-term rental activity. If you rent through Airbnb or VRBO in Michigan, a standard policy can be voided at claim time. Purpose-built STR coverage or a specific endorsement closes the gap.
Lessors Risk and Leased Buildings
If you own a building leased to a business tenant, lessors risk coverage protects the structure and your liability without covering the tenant’s operations. It’s a specific policy form built for property owners who don’t run the business inside.
Coverage Options for Michigan Property Owners
Most property owners need more than one coverage. Marcus helps you understand which combination fits your property type and how you use it.
Property and Building Coverage
Protects the structure against fire, wind, hail, water damage, and other covered losses. DP-3 (Special Form) coverage at full replacement cost is the current standard for Michigan rentals, given construction inflation over the last three years. Older ACV (actual cash value) policies often leave owners far short at claim time.
Landlord and Commercial Liability
Covers tenant slip-and-falls, dog bites, injury claims from visitors, and other third-party claims tied to the property. Michigan landlord lawsuits often start with a winter walkway or a maintenance issue, so liability limits matter more than most owners realize.
Loss of Rental Income
Pays the rent you’d have collected if the property becomes uninhabitable after a covered loss. Twelve months of gross rent is the coverage level most Michigan carriers now recommend, treating it as mortgage protection rather than an optional add-on.
Ordinance or Law Coverage
Covers the added cost of rebuilding to current Michigan building code after a covered loss. With Michigan’s residential energy code updates phasing in through 2026-2028, post-loss rebuilds on older Metro Detroit properties can trigger significant code-upgrade expenses this coverage pays.
Commercial Umbrella
Adds a layer of liability protection above your underlying landlord or commercial policy. A $1 million umbrella across a rental portfolio is common practice for Michigan owners with more than one property or a higher-value building.
Common Michigan Commercial Property Insurance Questions
These are the questions Michigan property owners actually ask us. If yours isn’t on the list, give us a call.
Do I need special insurance for a rental property in Michigan?
Yes. Standard homeowners policies exclude rental activity, and a claim on a rental property covered by the wrong policy will typically be denied. Landlord insurance (or a commercial policy for larger buildings) is built for the specific risks of renting property to tenants.
Does my landlord insurance cover my tenants' belongings?
No. Your policy covers the building and your liability as the landlord. Tenants need their own renters insurance to cover their possessions. Michigan allows you to require renters insurance as a lease condition, and $100,000 in tenant liability coverage is a common minimum to ask for.
What happens if my rental property is vacant?
Most standard landlord policies limit or exclude coverage after a property sits vacant for 30 to 60 days. If you know a property will be empty (between tenants, during a renovation, or seasonally), a vacancy endorsement keeps the coverage in place. Otherwise, a fire, burst pipe, or vandalism claim on a vacant property can be denied.
Do I need separate coverage for a short-term rental or Airbnb?
Usually yes. Standard landlord and homeowners policies typically exclude transient commercial use. If you rent through Airbnb, VRBO, or similar platforms in Michigan, verify in writing that your policy covers short-term rental activity or add a specific STR endorsement. Otherwise, a claim during a paid rental can be denied.
How much has commercial property insurance gone up in Michigan?
Rates have risen significantly. Michigan landlord and commercial property premiums increased sharply between 2023 and 2025, and Michigan DIFS has approved additional double-digit rate adjustments across major carriers for 2026. Construction inflation and reinsurance costs are the primary drivers. Reviewing your policy at renewal has moved from an option to a necessity.
Protect Your Property with Confidence
Your property deserves coverage that fits the way it’s actually used. Marcus Schirr Insurance Group helps property owners across Michigan choose the right coverage through Farm Bureau Financial Services, backed by a personal, local approach.