Insurance Inquiry: Landlord Coverage for Property Leased to a Sober Living LLC

Columbus, Ohio
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Insurance Inquiry: Landlord Coverage for Property Leased to a Sober Living LLC

Misook Foley
Investor · Lewis Center, OH · Member since 2015 · 21 posts · 10 votes

I lease my property directly to an LLC that operates a sober living home. My role is strictly that of the landlord; I do not manage or operate the sober living home. It is a peer-managed, shared living arrangement, and no medical treatment is provided at the property.

I recently realized that my current landlord insurance policy may not adequately cover this rental arrangement. I am looking for insurance that specifically covers me as the property owner leasing to a sober living LLC.

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  • Tony Wilcox
    Insurance Agent · Member since 2020 · 178 posts · 76 votes
    2w

    Yes, a normal landlord/dwelling fire policy would exclude these types of risks. You will want to get coverage that explicitly covers sober living homes. Your policy, most likely, only covers long term 12 month rental agreement tenants. Feel free to msg me if you are interested in a broker to help with that type of policy.

    0Reply
    • Misook Foley
      OP
      Investor · Lewis Center, OH · Member since 2015 · 21 posts · 10 votes
      1w

      I sent connect request through your BP profile.

      0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 684 posts · 287 votes
    2w

    You are right to address this proactively, @Misook Foley. Even though you are only the landlord and the LLC operates the sober living home, an insurer may view the occupancy differently from a conventional residential rental. The key is full disclosure: describe the property's actual use, the LLC lease, the number of occupants, and confirm that no treatment or clinical services are provided.

    I would contact an independent commercial-insurance broker familiar with sober living, group homes, or other shared-housing risks. Ask whether you need a commercial lessor’s risk or specialty dwelling policy, and review coverage for property damage, premises liability, loss of rents, ordinance or law, water backup, and umbrella liability. Pay close attention to exclusions involving communal living, business activity, assault or abuse allegations, and misrepresentation of occupancy.

    Also require the operating LLC to maintain appropriate general liability and any operator-specific coverage, name you as an additional insured where available, and provide certificates and renewal notices—but remember that its policy does not replace your own. Have the lease and indemnity provisions reviewed as well. The precise policy will depend on the property, jurisdiction, and carrier underwriting, so obtain written confirmation that the disclosed use is covered rather than relying on a verbal assurance.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    2w

    Who owns/controls the LLC will probably matter to the insurance company

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  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 718 posts · 268 votes
    2w

    I'd recommend speaking with an independent insurance agent

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  • Misook Foley
    OP
    Investor · Lewis Center, OH · Member since 2015 · 21 posts · 10 votes
    1w

    Thank you very much to everyone who replied to my question.

    0Reply
  • Alode Paul
    Specialist · Hinton, WV · Member since 2026 · 28 posts · 0 votes
    5d

    Hi Misook!

    Standard landlord policies often exclude care home operations. To protect your property, ensure your tenant's LLC names you as an "Additional Insured" on their Commercial General Liability policy and maintains state-compliant house rules.

    I help landlords audit tenant compliance to prevent claim denials. Where are you currently at with their lease setup?

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