Wow, you are firing off questions faster then I can read them and they are all good, but pretty general.

And maybe we have another coming up with Covid if you have some self employed end up with bruised credit because of what's happened I could see this happening again.although we know that appreciation was on fire since 2012 when things hit all time bottoms..Although on devils advocate  lets say the houses never went up . ? 

Depending on the country there also might be fire risk mitigations.

I am managing those and feel like I have been drinking from a fire hose. 

Compliance items such as adding smoke detectors, hand rails, fire resistant garage entry-door and new stairs outside.

The homeowner insurance market right now is a dumpster fire with carriers refusing to write business and creating incredibly tight underwriting guidelines.

Haven't had any issues, but I am worried about liability should something happen like a fire. 

Fire pit free for all. 

Point is, risk exists with ALL of it and there is no sure fire "guaranteed" anything.

I don't think you are going to be able to get insurance for two separate living units in a single-family when they are both illegal and likely do not have the correct egress windows (basement) for fire safety which could subject you to huge liability if something happens to either party.