This protects your personal assets from being used to satisfy rental debts (ie, mortgage defaults, lawsuits from tenants, etc.)

The house I'm looking to buy has a mother-in-law suite in the back of the property.

That might or might not be the number they use in their deficiency lawsuit against the borrower down the road but it could be, and that minimum or opening bid is the start of all that.

I searched for an answer to my question on the forums and online but was not satisfied with what I found (either unclear answers or several years old).If I have an in-law suite in my basement, and I want to rent it out through Airbnb and potentially VRBO and others, am I not adequately protected by the AirBnB Host Guarantee and Host Protection Insurance?

We initially financed this house with a VA loan, but we paid it off within a year using money from a lawsuit.

Properties with in-law suites aren't the most common type so you may have to find a place with a finished/unfinished basement and do a build out.

You only need protection if you have exisitng funds that can be lost from a lawsuit.

@Aaron Hirsch I just had my basement in-law suite turn over and was actually surprised how quickly it went.

When are you considered "safely behind" a legal entity should a lawsuit occur?

I rent the in law suite in my basement on Airbnb full time.