The suit can and will always occur where the injury happens.

It turns out minor injuries that COULD POTENTIALLY lead to claims should be reported to both your insurance company AND Airbnb.

My HML requires a GL insurance policy that will cover me in case of injury so I'm not worried about that.

We will be living in the main 2B/2BA house for now, and renting the guest house.Does anyone have any insights on how to structure an insurance policy that covers us for both standard homeowners insurance risks, and home-sharing activity risks such as theft, property damage, and personal injury?

Each state has its own laws.Mostly determined by your tolerance for risk (10 small rentals v. a single 150-unit).Segregate character of income (rental income from dealer income, etc).Segregate by character of risk (landlord premise liability v. construction personal injury).Segregate by participants (spouses v. unrelated 3rd party).

Your renters policy also includes personal liability coverage if you're legally responsible for someone else's injuries or damages.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Waiting longer might make this foundation issue irreversible as the property I believe you are talking about is an older row home with brick and stone foundation. 

I was a corporate attorney but generally only do personal injury and real estate transactional work now

The vendors we used were fantastic, and thankfully no injuries or other substantial issues arose.My direct contact info is in my profile, wont allow us to post in forms here.