I had to shop for new homeowners insurance a few months ago. I checked out American Family and they would only insure an in home daycare if it were 3 children or less. Same went for State Farm and Allstate.
I have a separate policy for my daycare that I pay $460 a year for.
I would suggest finding an agent that works for several companies that can either put you in touch with a company that will insure your home and business together or can write you a separate policy for the daycare.
What state are you in? Perhaps someone else can chime in and help you if they know your location.
