Denied umbrella policy with short term rental

[Frank C.]

We are closing on our first rental house in a couple of weeks.  We are considering doing a short term rental (Airbnb, VRBO) for the first year until our daughter moves into the house for college accommodations.  She will then find roommates and live very cheaply as a resident landlord.  We have all of our insurance with USAA (cars and primary house) as well as a $5 mil umbrella policy.  The premiums are about $2300 per year for the umbrella.  When we spoke to USAA about insuring the new rental house, they said that they would not renew our umbrella policy if we had a short term rental in South Carolina.  We could stick with the long term rental and keep our current insurance.  Or should we shop around for a new umbrella policy and a policy to insure a short term rental?  Any suggestions?  

Financially, it might be better from a cash flow perspective to do the long term rental. However, I can involve my wife and kids in the business of managing the short term rental and this has value above and beyond the cash flow.  I would consider it cheap education if we lost a few thousand in rental income by trying Airbnb.