There are probably exclusions for intentional damage by the policyholder, but I’d imagine that’s rather rare. 

I am not sure if the step-up basis was your intention here.

The intent is to home hack my first deal with a 5 or 6 bedroom single family and rent out the other rooms to college students and or medical professionals.

My intention is to buy & hold the  property.

We had full intentions to make it more formal but the deal happened really fast.

Here are the details; My intention was to BRRRR however I ended up with conventional financing and just wondering if it will still make sense due to closing costs?

It looks like his intention was to purchase only if he found a buyer. 

@Jassen Bowman That sounds good, but my intention is to move in a multi-family home with the intent of using tenants rent to pay off my mortgage and expenses which is the main purpose of house hacking.

ie. if use my own letter of intent, purchase contract etc. and have my title company manage escrow for me?

They act intentionally, and with purpose.