Honeycomb Insurance Expands Digital LRO Coverage to Michigan, Massachusetts, and Illinois

Honeycomb Insurance is scaling its Lessor’s Risk Only (LRO) coverage into Michigan, Massachusetts, and Illinois, marking a significant expansion for the digital insurer’s commercial footprint. For brokers and MGAs, this move provides a streamlined digital route to place office and retail risks, leveraging property-level data to achieve more granular pricing in a historically manual segment of the market.

What was announced

Honeycomb Insurance has officially extended its Lessor’s Risk Only (LRO) product to three new states: Michigan, Massachusetts, and Illinois. This expansion increases the company’s LRO footprint from four to seven states, specifically targeting agents who manage portfolios of office, retail, and other commercial properties. The product is designed to integrate with Honeycomb’s existing digital platform, which is already utilized by its agent network for multifamily and condominium association business.

The LRO offering utilizes a technology-driven underwriting infrastructure that allows agents to quote and bind policies for individual assets, full schedules, or entire portfolios. By using a physical address to determine initial eligibility, the platform evaluates each property on its specific merits rather than applying broad category assumptions. This approach is intended to provide pricing that more closely reflects individual risk profiles, allowing agents to quickly identify appetite for specific commercial risks.

Currently, Honeycomb Insurance manages coverage for approximately $150 billion in real estate value across 26 states, with continued expansion planned throughout the year. The company reports that its underwriting strategy has allowed for consistent renewal pricing and minimal average annual premium increases, even as it scales its operations. The expansion into these three major markets is part of a broader strategy to increase the volume of commercial property business handled through its automated systems, building on existing relationships with agents who already use the platform for habitational risks.

"Expanding LRO into Michigan, Massachusetts, and Illinois is an important step in growing what we can offer to our agent network," said Itai Ben-Zaken, Co-Founder and CEO of Honeycomb Insurance. "Our agents already know and trust the Honeycomb platform, and we're giving them the ability to bring more of their commercial property business to us with the same speed, ease, and property-level underwriting that defines our platform."

Itai Ben-Zaken, Co-Founder and CEO of Honeycomb Insurance.

The companies involved

Honeycomb Insurance is a digital-first insurer that specializes in the habitational and commercial real estate sectors, specifically focusing on landlords and condominium associations. The company has positioned itself as a technology-driven alternative to traditional carriers, utilizing proprietary underwriting algorithms to assess risk at the individual property level. This allows for faster turnaround times for brokers who have traditionally dealt with slow, manual processes in the commercial property space.

The firm has seen rapid growth in recent years, expanding its reach to cover a significant portion of the U.S. real estate market. By focusing on niche segments like multi-family housing and now expanding into broader commercial categories through its Lessor’s Risk Only program, Honeycomb has carved out a space as a specialist provider. The company emphasizes underwriting discipline as a core component of its business model, aiming to maintain low loss ratios while providing competitive pricing to its agent partners. Its operations are supported by a growing infrastructure, including a significant presence in major insurance hubs, which facilitates its ongoing expansion into new state markets across the country.

What FF News has reported before

FF News has closely tracked the rapid geographic and product expansion of Honeycomb Insurance. In late 2026, the publication reported on the company's move into the Southeast with Honeycomb Insurance Expands Tech-Driven Property Coverage to Tennessee and South Carolina. This followed the initial launch of the commercial product line detailed in Honeycomb Insurance Expands into Commercial Sector with New Lessor’s Risk Only Program.

Earlier that year, the insurer addressed specific market gaps in the West, as covered in Honeycomb Insurance Enters Nevada to Solve Habitational Coverage Gaps with AI Underwriting. The firm’s operational growth was also highlighted when Honeycomb Insurance Opens New Headquarters in Chicago to Support Rapid Growth, a move that signaled its intent to scale its presence within the U.S. insurance heartland.

What this means from an insurtech perspective

The expansion of LRO coverage into major markets like Illinois and Massachusetts highlights a growing trend where digital-first providers are successfully challenging incumbent carriers in the commercial property sector. By automating the underwriting of office and retail risks, Honeycomb is placing significant pressure on traditional insurers that still rely on manual inspections and legacy core systems. For brokers, the ability to bind entire portfolios digitally reduces administrative friction and improves speed-to-market. This shift suggests that the "habitational" model of high-velocity, data-driven underwriting is now mature enough to absorb more complex commercial risks, potentially forcing a broader industry move toward property-level pricing differentiation and higher transparency in loss ratios.