Finding Insurance - STR/MTR that is rented room-to-room (3/2 w/attached ADU)

[Zachary N.]

Hi everyone, my name is Zack and this is my first post here. Big fan of the BP podcast and I am an early stage RE investor. The strategy for my wife and I is to buy and hold (rent), and our first home has been a house-hack (3/2 with an attached ADU; 4/3 total). We are in escrow for a second property and I am trying to sort out the transition of the first home from a primary residence to a rental property. We've had a Farmers insurance policy since buying the home, but Airbnb really spooks major providers, where they require a standard 6 or 12 month lease agreement to proceed.. My insurance agent mentioned Crystal Lake (?) as a "vacation/seasonal home" insurance provider that might be a better fit. I've also inquired with Proper Insurance, which seems more comprehensive, but they will only provide insurance if we rent our home as a 3/2 and an ADU with no shared interior space (our room-to-room approach would not be covered).

I would love some suggestions on how best to proceed and where I might be able to learn more about what is insurance options are available for room-to-room STR and MTR in Southern California. Thank you so much for your support!

All the best,

Zack (San Diego)