JasonWe've been seeing both rate and coverage increases impacting Homeowners. 

Other than that, you will have to use a debt service coverage ratio loan.

-we were quoted some private flood insurance around ~$1800 for what we thought was adequate coverage for all buildings, underwrote that number, and moved onA little further along we learn the flood zoning is zone AE, private flood insurance isn't much of a thing for an AE zone, and FEMA flood insurance is expensive. 

Liability wise you should consult a lawyer, but it may be as simple as a waiver and proper insurance coverage.

That’s what Debt Service Coverage Ratio (DSCR) loans are used for.

If you were to lose insurance coverage your loan could be called.

I've seen a lot of Allstate rental properties with ACV or market value coverage rather than Replacement cost and other tricks to reduce coverage levels.  

Do you know if you have replacement cost coverage on the roof?  

You do need to tell your homeowners insurance that you are a landlord and are leasing out the other half of the property so they can write the appropriate liability coverages for you. 

@Bryan Atkinson what insurance company provides property coverage for this type of exposure?...