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

[Andrew Cooper]

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!