STR insurance needs

[Alan Ng]

new STR host here. Looking for unique insurance coverage. I understand airbnb and vrbo has some liability coverage mostly for guest and host - mostly damages and for smaller items (at least based on my perusal of people's postings on their claims etc). Hopefully someone with experience filing claim or dealing with these insurance companies for STR issues can chime in.

My situation: waterfront property

-upper level to be STR (I estimate 100d a year at most) 1800sf + lower level is owner occupied 850sf

-there's also separate ADU 500 sf with long term tenant.

So I hear a typical homeowner or a landlord insurance policy won't fully cover my PROPERTY (if catastrophic and need rebuild) or liability (if paying guest gets hurt). Given that it's owner occupied and not entirely STR (not even more than 50% of year), do I need commercial insurance? It seems majority of the standard insurances claim to have some type of dwelling or homeowner policy with specific written things for STR. Is that good enough?

1. PROPER insurance appears to be comprehensive but is quite cost prohibitive + they make you do all sorts of extra safety precautions that dec their change of claims but can be costly for the host AND I also heard people that have tried going through them for claims and it wasn't as straightforward either despite their more comprehensive coverage.

What do yall think? PROPER also has written in bed bug/flea infestation etc. How likely? And given the savings from the insurance premium, can't the homeowner cover that themselves? 

2. I also heard UMBRELLA insurance won't cover you since STR will be considered commercial? And your umbrella on the property won't apply...