House Hacking: Insurance wont offer coverage with roommates

[Brandon Gale]

So I am currently looking to buy a multi-family property with a conventional 5% down loan and live in the property. I have a specific property I am currently pursuing and have been trying to refine my analysis with more accurate numbers for expenses. The property is a 3 unit with 3 bedrooms in each unit, so I plan to live in one unit and rent out the other 2 rooms in my own unit. I called the insurance company I currently use for renters and for my car to ask for a quote but when I told them that I would be renting out the 2 rooms in my own unit as well they said they would not be able to offer me any coverage and would not explain to me why.

Does anybody know the reasoning for this? and more importantly... Is there a different kind of coverage other than homeowners that I should be seeking? or is this just based on the insurance company and I should just keep shopping?

I appreciate anyone's input, thanks.