You can get the same personal protection by adding an umbrella policy to your homeowners insurance to make sure you have adequate coverage, so you should never have to pay out of pocket if you get sued.... obviously tax questions in play as well, for which is better for any particular person.

I suggest just getting an umbrella liability policy and calling it a day.

A $1M umbrella insurance coverage would suffice.

You can get an umbrella policy to cover things like that that go wrong above and beyond your normal policy.

If you're starting, it may be more beneficial to create an umbrella coverage. 

Doing that plus having a good umbrella insurance policy to take care of any mishaps that might happen seems like a good way to build a track record while you all are figuring the short-term rental game out. 

Rather, you could look at simply getting an umbrella insurance policy on top of your existing home owners policy to provide the protection you are looking for.Best of luck,John

But, if you were my client here in Texas then I would recommend doing a Personal lines Dwelling Fire (landlord Policy) with $500k in Personal Liability and then have either ASI (American Strategic) or personalumbrella.com write an Umbrella for the extra $1,000,000 in coverage. 

Has anyone had success in litigation when having a Series LLC or a Trust with an LLC as beneficiary combined with an umbrella policy?

Nothing wrong with getting an umbrella policy either, just in case.