Insurance for co-living PadSplit property

[Crane Bristol]

Hello,

I am under contract for a 4200 sq ft house that I plan to convert to an 11 bedroom, 5 bathroom co-living PadSplit house. I have been working with insurance brokers to quote insurance for the property. My usual insurance broker is telling me that the usual landlord policy providers will not provide insurance on a property that will have more than 5 leases on it. In this case, I plan to have 11 leases for 11 bedrooms. So, they looked at their commercial providers, and I received an initial quote for $9,000 per year, which is about twice as much as I was expecting. 

What do you all do for insurance on your units? 

Do you have someone you can recommend who understands and insures co-living and pad split properties?

[Miller McSwain]

Yo! I just wrote the BP book on Co-Living (25% off here: https://CoLivingBook.com)
I've looked pretty heavily into Co-Living insurance. Long story short, the answer is unclear as the strategy is in its infancy.

BUT, here is what I've learned.
From talking with lots of insurance brokers, you could be in the clear if they can find a company that:
1. Allows multiple leases (unspecified or 11+ in your case)
2. Allows leases that are less than 12 months and more than 1 month

I'm in Colorado (I think you might be too), and carriers that have met that criteria have been Travelers, Auto Owners, and SafeCo. 
DM me on insta and I can send you my insurance broker's info. He really knows what he is talking about in CO.

The issue is that in other areas, like guys I've talked to in Houston, TX, those particular carriers have pulled out, so instead they are having to use short-term rental policies which are much more expensive.

Also, be wary of Steadily. I've heard that they no longer cover Co-Living/PadSplit. And, I had a consultation with them last year and asked for apples-to-apples policies so I could compare premiums against my current policies. They sent back options that were way cheaper and assured me they were apples-to-apples. Upon further investigation though, I found that the hail deductible was way higher (not good in Colorado Springs as we replace our roofs every ~5 years due to hail).

Note: We don't use PadSplit. Instead we advertise for free on FB Marketplace, Zillow, etc with great success. It is unclear how insurance may look at PadSplits as they use the membership model rather than renting normally. So I can't speak to that method exactly.