Plus it covers the much more likely occurrence of a car accident as well as liability on your primary and rentals. 

Like my favorite example I heard years ago that 75% of car accidents happen within a 5-mile radius of the person's house.

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

You never know what type of accident can occur.

Avoided accidents and did not require tearing the hardwood out

But the police will be dealing with the vehicle accident, the lost hiker, the rape victim, the assault, the fight at the bar (maybe if they even have time for that) well before they have time to deal with the loud music. 

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Say there is an accident on your rental property and you are sued.  

That's how I started also, by accident - Lol I didn't know what househacking was even.

I've got stories on top of stories on top of stories.Poop is pretty horrific ya?