Owner occupant insurance policy for rental-claim illegitimate?

[Chad C.]

If I have an owner occupancy policy on a rental, and make a claim will the adjuster know whats up and deny the claim? Is this insurance fraud?

I have one property like this in place and another under contract for 64k. They are below base flood elevation, and flood insurance is outrageous $3100, and makes the performance of the property decrease to a point I may not purchase. I have found a private insurer for mobile homes that do not require an elevation, but has to be an owner occupant. On the first policy they weren't explicit on not renting when they wrote it, but this time they are.

The difference in price between the two policies could pay for remodeling the home from flood in 8-9 years.

Could I get the cheaper policy to satisfy the bank in the amount of the loan, then a cheaper policy to cover my liability, or an umbrella.