How transparent do I need to be with insurance when house hacking rent by room?

[Jacob Shumate]

Hi,

Recently my insurance renewed for my home which there was a increase of over 50% to my premium. I've made no claims which they told me that this was increases across the board. I find this to be a ridiculous increase so I decided to start shopping around elsewhere and have gotten some quotes which included home-sharing coverage from a couple of independent brokers. After getting those quotes, I decided that I would try to cut the middle man out (independent brokers partnerships with insurance companies are factored into the premium, but I could be wrong) further reducing my premium by directly contacting the insurance companies based off those quotes. I contacted Travelers Insurance and after talking with an agent, I was told that they could not underwrite my policy due to the fact that I was renting out by the room and not to a family. I currently live in the basement of a SFH and rent out 5 bedrooms with 3-12 month leases.

I don't understand this. I tell the independent brokers the same as I what I tell the insurance company. How come brokers can find polices that include home-sharing but I can't do it directly with the insurance company? Is there a point of being too honest with the insurance company when asked about whether renting by the room vs family and short lease vs long lease terms? I don't want to lie and later be denied a claim if I ever had to file one. But also can the insurance company determine who I rent to and how long I rent rooms for? 

Is it also true that if you frequently switch insurance companies that it will reflect in increases in the premium? I don't know for sure but I think that I may have gotten the new customer promotional rate with Safeco then followed into the 2nd year where they significantly increased the premium. Seems kind of sketchy like what cable/internet companies do which I would hate to have to change insurance every year to get competitive rates. I understand that insurance gradually goes up every year due to various factors but a 50% increase seems excessive.

I know I said I wanted to cut the middle man out but I would like to go with an independent insurance broker if they can find me a competitive policy so if anyone could recommend someone that specializes in house hacking rent-by-room strategy for the Denver metro area, that would be great as well!

[Tanner Pile]

@Jacob Shumate

Mine went up about 45% as well. My insurance broker recommended I switch to nationwide for better rates. He also mentioned Travelers was doing this to almost everyone.