@Tim Roberts I can send you some examples of multistate portfolios I have done for investors in the last few months.I think you will find there are very competitive insurance programs for the CA properties, but they are only available for CA properties.IL & CO are a little easier to combine onto 1 policy while keeping the premium competative, but the hail and wind issues in CO may make sense to break them out again into separate policies.

I've called most of the major insurance companies about this place and told them the plan and they refuse to write that kind of policy.

What's your policy for late payment?

Inform the tenants of the pending change stating it is your policy to review rent amounts annually and make adjustments based on the market. 

Take a zero tolerance policy against them.

Since Desjardins bought state farm its really a desjardins policy right?

If this company does not offer higher limits you should consider an Umbrella policy  That policy will provide an additional layer of Liability above your homeowners Liability and your Auto Liability.  

In addition, they are also pushing a "first come first served" policy which requires that landlords grant occupancy to the first qualified applicant.

I can tell you from first hand experience that what you state has been true for me (unfortunately, I am one of those learning the hard way).I think, if possible, one should question what the first-time CHA inspection pass rate is for a particular PM, % of units that are under abatement, policies and abilities to collect the tenant portion of rents, costs of an annual inspection (from what I've learned, there are always costs after each inspection), plus what vendors they use for things like exterminators. 

Does anyone have advice on whether I should keep my policy or switch to a landlord insurance policy?