most insurance carriers are middle men who broker a connection to a construction policy carrier and add 10% on top for themselves. the key is to find an insurance broker that the construction policy company pays to derive business for them so you get your policy at cost and will help shop with multiple providers to get you the most competitive terms 

I do work remotely from the home and was also wondering if I could write off the portion of where I use the space as a office on the same home as he’s claiming without causing any flags on the property address.

I want to keep my insurance carrier.

The insurance renewal premiums popped up and there are only a few carriers for Florida as it is.

This is a huge red flag. 

I would also ask all contractors about how their draw process works (red flag is: 1/3 up front, 1/3 at half way, and 1/3 at completion.  

Student housing is a definite no for many or perhaps most/all standard carriers but pricing doesn't necessarily have to be triple.  

The issue for you is you (or your wife) now may have two insurance carriers fighting over who will pick up coverage (assuming your intermediary LLC has appropriate insurance) or if it does not, your property insurance carrier may try to get out of coverage because of your slick deception tactic of using an alter ego which is the last thing you would want.Just  yesterday another BP forum poster wanted advice on a similar strategy when leasing a rental cottage on the same lot as their residence.

I’m not saying he isn’t right with the loophole (I agree and interpret it that way as well), it’s just so new that possible audit flag and a lengthy court case?

However, the Section 8 tenant I was moving in had a 4 year old and they flagged it and I ended up having to scrape and paint it to get approved for them to move in.