This policy will provide additional coverage above what your existing policy covers.

Our insurance policy for the project alone was well over $100k. 

Each can have a variation of their credit policy.

Friends, family, or you might be able to access funds via a HELOC, cash value from a life insurance policy, take a loan out on your car, etc. 

But it’s unclear if this applies to HomeStyle loans specifically, given the initial renovation appraisal already accounted for these improvements.I want to know if anyone here has been successful in getting PMI removed under similar circumstances or has any insights into the specifics of Fannie Mae’s policies for HomeStyle Renovation loans.

Now if you didn't refinance rented that unit out before living in it for a year and changed your insurance policy to a commercial one, that could be problematic (just to give an example). 

They've figured out how to take advantage of the warranty policies to benefit themselves.

If something happens and someone is injured due to over occupancy you could open yourself to legal liability and you would have to check with your insurance policy to see if you are covered since you knowingly would be operating for more occupancy than permitted for the structure.

My gut says you probably want/need separate policies for the different entities at the very least - the purpose of having them is to keep things separate in case of a lawsuit, so combining insurance would pierce the veil and allow someone to come after everything. 

Airbnb algorithm is a mystery somewhat - but the algo does factor your cleaning fee, cancellation policy, review score, and more when factoring visibility.