Luckily nobody injured, but the adjacent property was so badly damaged, the city fully demolished it the next day.It is definitely a surreal experience dealing with this exact issue.  

What about your liability insurance coverage if someone is injured and the insurance company realizes that your second unit is illegal?

I'd tell him that I understand his client would have to prove he injured himself on my property because of my negligence and that is going to be pretty hard to prove.

If the roof wasn’t installed to meet safety standards, and crashes down, severely injures or kills the tenants, and the insurance company denies my claim, I’d be screwed.I emailed my insurance agent, asking whether my insurer would deny a claim in this hypothetical scenario, she emailed back and said, “To answer your question about SFIC approving or denying a claim, I really can’t answer that question.

Does that protect your building from structural damage and potentially injuring someone?

If you are the piece holding everything together, it could be a nightmare if you were to get sick or injured.

I am happy to delve into it further with you if you choose, but if you talk to someone else, just make sure they walk you through the variables with staying with a personal policy vs transferring to a commercial policy...etc@Sydney Hall to answer a few of your questions...1st you can have an umbrella even if you don't own a home--most of your personal liability comes from auto exposure--you are much more likely to have a hefty liability claim from a car accident than someone getting injured at your home.2nd based on the limited info provided, you should have a Business Owner's Policy as a business owner--property and liability coverage (especially if you have a physical office location).  

Also, since there is no homeowner's insurance, I am worried that if a visitor to the house is injured, I can be sued.

Upside of paying off your mortgage early........ the house is paid for.... as long as you can pay the taxes, insurance and basic utilities, then you will never be out on the streets if you lose your job, get sick/injured etc.

Are there cases of injured tenants being awarded a large amount in the millions?