How to insure a house where you rent by the bedroom

[Erik Andersen]

Hello everyone! 

I have a 102 year old house with 7 seven bedrooms and a 3 car garage under contract that I plan on living in, and renting the extra bedrooms. Everyone will share the common areas and the 3.5 bathrooms. My goal is turn the place into a student housing situation and potentially be open to renting month to month. That sort of flexibility will allow me to catch as many students as possible. I've also checked with the city, they are fine with this arrangement.

Now, I'm trying to be as upfront and legal about this situation as possible. I've called most of the major insurance companies about this place and told them the plan and they refuse to write that kind of policy. Do any of you know an insurance company that will write a policy like that? Otherwise, do you know what the legal ramifications would be if I told them I only had a few long term roommates, but I had a lot of short term renters, and I had to file a claim? Also, would that insurance arrangement cause any issues during the eviction process if I had to force someone out?

Any insight or experiences you could share on this situation would be much appreciated! 

Thank you, 

Erik Andersen.