Type of Insurance needed when renting out a property to a Assisted Living Facility

[Mohamed Odeh]

I currently own 4/2 SFH in Modesto CA. I came across a fairly creative deal.

I will be renting out the home to an individual who will be sub-letting the home to an Assisted Living Facility. I have done my due diligence on the business, they currently run 3 other facilities out of SFHs in the area.

My question is, why type of insurance is required for this setup? Would Landlord insurance suffice for this situation? Do I need commercial insurance? The Assisted Living Facility will have insurance and $1M in liability coverage.

I called my current insurance and they told me they would no longer cover if I rent to a business like this. What do folks recommend here?