@Eric Andersen I would verify with your insurance agent that the landlord/owner policy would provide coverage for this risk.

I would recommend getting umbrella insurance over your regular policy to better protect yourself and it often makes the insurance company make sure you have the insurance you need to have that coverage as you are getting coverage beyond and above for a lot of different things when you add on Umbrella insurance. 

I also carry quality liability insurance coverage. 

Just sharing in case it can help someone as these loan types are not as common. There are loans for investment properties that you can use debt-service to qualify with instead of income. So more or less if the propert...

If you did you may have coverage under the Continuation of Coverage provision of the policy and I would immediately file a claim with the title insurance underwriter. 

We contacted Lloyd's , our insurance carrier and basically would not coverage any damages.

Being an agent you're more likely to have access to supplements that would give you the details on this as well- and you know it would be mentioned if these were two separate parcels for property tax purposes then (at least as far as seller knew). 

I notice you also have no insurance costs, which means you also have no liability coverage.

Christopher,Your comment "...current provider and they said that if I did put in an apartment they wouldn't be able to provide coverage." 

They are similar to a bank loan but they underwrite the property and Debit Service Coverage Ratio on the property.