Insurance for Roommate-Tenants in Owner-occupied SFH Washington D

1 Reply

Hi all- I currently own an owner-occupied SFH rowhouse in Washington, D.C. I rent out two rooms to tenants and live in the basement (which is shared with the rest of the house I.E. kitchen, living room, W/D). I had not really considered insurance for the property outside of my standard homeowners insurance. Recently, I inquired with my insurance agent about my policy to see if I am covered under my current situation. They told me that if the insurance company found out, I could be dropped from my insurance and any claims could be forfeited and breach the contract.

Needless to say, my stomach dropped. My agent proceeded to tell me that there are no policies out there that cover this type of situation outside of a special policy from a non-standard carrier like Lloyds of London. So I'm a little nervous at the moment. Additionally, I know that I am not the only person who is in a type of situation like this. I guess I'm just living on borrowed time until I can figure out something to do. I am also planning to add a third tenant in the near future. 

Has any one found a solution to this issue? Any advice? I don't want to lost my homeowners insurance and I don't want to lose my rental income either!

What company are you with?  Did you read the portion of the policy that states you cannot have roommates?  

I could see the insurance company dropping you if you weren't living in the property, and kept the home owners and didn't get a hazard policy, but since that is your primary residence I would be surprised that they would care if you were renting out a room or rooms.  It would probably be smart for your roommates to have renters insurance to cover their belongings regardless of your insurance policy. 

My advice is to read your policy thoroughly, see where it says anything about roommates, and if it stipulates you can't have roommates I would look for another insurance company. 

A quick Google search yielded this article which may help as well: http://rentingoutrooms.com/how-roommates-in-your-house-affect-your-homeowners-insurance/

Keep us posted, curious how this turns out... 

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