Id say the lease doesnt have to be a whole lot "more involved" as you ask, the insurance company is concerned that your son (and/or you) has a legimitate "insurable interest". (Price, terms, duration, legal description, liability, which party is responsible for what, signatures are the very basics of a lease) Since the lease is to be for a one year term(s), I'd want it written and signed by all parties (owners of record and Tenant). Generally theres no requirement that a lease needs Notarized to be valid UNLESS the instrument is to be recorded (or your state has a statute that requires it), but it dosent hurt if your signatures are indeed Notarized and that way recordation is possible. Besides, recordation serves as actual (and constructive) notice to the general public of "interests" in real estate, so Id probalby have it Notarized and Recorded just to be safe. I SUGGEST AN ACCURATE LEGAL DESCRIPTION OF THE ACREAGE TO BE LEASED not just the barns on the SE corner of my farm, I'm sure you get the point. ALSO the lease will cover who is liable for accident or injury on or about the propery (generally the Tenant) and who bears the risk of loss and/or who insures against such loss (usually the landlord if he owns the real estste on which the buildings set).
You say its "your sons" sheds and barn BUT YOU SAY ITS ON YOUR PROPERTY hmmmmmmmm Generally real estate is the land and all structures permanemtly attached thereon, which means those are your barns and sheds I GUESS THATS WHAT THIS IS ALL ABOUT AND WHY EVEN IF THERES NO INSURANCE ISSUES THERE NEEDS TO BE A WRITTEN LEASE (same quality as if tenant were a total stranger) REGARDLESS!!!!!!!!!!!
HERES SOME PRACTICAL CONSIDERATIONS: Even though its "family" I recommend it still be formally conducted just as if a total stranger were the tenant. Such can protect BOTH parties down the road in case of accidents or injury or changed family circumstances or damage to the real estate. As far as the cost, its a deductible business expense to your sons operation and income to the landlord, your son might wanna ask your accountant about that.
ONE LAST THING Insurance Law is a strict matter of contract and if there was a catastrophic loss the insurance company will look for any possible loopholes, so Id still want a decent written lease that complies with the insurance contract requirements that you mentioned above.
WARNING AND DISCLAIMER As I said above, insurance law is a strict matter of contract interpretation and what it says matters NOTTTTTTTTT what myself or any other lawyer or any lay person here thinks or what THEIR insurance contract says or what some other persons particular states laws say, SO CONSULT YOUR INSURANCE CARRIER AND GET A DECENT LEASE (dont have to be all that complicated, so long as the basics are there) and dont hang your hat or rely on any professional (mines sure included) or lay advice offered here THERES TOO MUCH AT RISK which the small trouble and expense of a lease that complies with the insurance contract is sure a wise investment.......
REMEMBER if its your land those are your buildings so actually BOTH you and your son have an insurable interest (perhaps you the buildings and him the contents) so make sure the insurance provider is well aware of the situation and whatever they say about the lease requirements are complied with.
SORRY I cant give you any short straight answer, but a "lawyers" answer, but these issues can be a bit more complicated then a person might think......If it costs you a hundred dollars for a lease and an attorneys professional opinion such complies with an insurance requirement THAT OUGHT TO BE WORTH SOMETHING even for the peace of minds it brings
Ol John T Semi retired "Country" lawyer so if any of my co counsel more current practicing "City" lawyers disagree, you might wanna listen more to them lol
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