Eventually, I left my SF rentals in my name and beefed-up insurance, including an umbrella. 

And you have to work hard at making the home a destination in and of itself (ex: hot tub, outdoor lighting, heat umbrella, fire pit with wood, grill, sauna, games, arcades, books, great cookware, etc.).

Personally, for SF rentals, I boosted each property's liability coverage to $500K and then had a $2M umbrella policy. 

If you're going the umbrella insurance route, perhaps see if it will cover you for several things including just the routine slip and fall (like mold or earthquake).

I do have an umbrella policy to cover all my assets but that has nothing to do with what replacement cost is to having full coverage on a property.ThanksDaria

Many investors, like myself, just hold TItle personally with homeowners/landlord insurance, umbrella policy, and keep the property in good repair. 

Also, the liability limit is good, but I always quote with 500,000 so you can be eligible for an umbrella policy, and it doesn’t take a millionaire to be sued like one!

Umbrella insurance covers the rest of the risk.

If you prefer conventional, you can buy it under conventional and get an umbrella policy to protect yourself.

Potential solution: Get business related insurance (either through rental or umbrella), and town permission to run a business here.3) Not being entirely truthful of questionnaire when asked about history.