Moreover, you don't want their guests to become tenants as they then have tenant rights rather than guests and they aren't on your lease document.This definitely is different for STR stays (under 30 days) since they guests carry no policy and everything is covered under your policy. 

Two rules as I understand it are in order to defer all taxes in a 1031, newly purchased property must be equal or greater in value of the net sales price of relinquished property and carry the same leverage (loan) of the relinquished property.  

We often recommend all renters carry renters insurance to further give  the renters someone to collect from before going after the landlord. 

Hands-free Maintenance: The fact that you don't have to worry about taking care of the nuisances of the day to day operation is gold.

Now… to get guests to know it's not gold stored in there to prevent their break-in attempts ;-) 

The floor will still carry the vibrations so a carpets floor may help but then you have the issues with carpet maintenance.

@Carrie TraxlerWow!

I've been advised now for years by my ins. agent to carry a very high deductible ($1500 per house) on our properties.  

Both were rare bargains for unique reasons and we were fortunate enough to make cash offers with quick closes to buy under market as both sellers needed to get out ASAP.However, we did use a RE agent to make offer and do the deal, he is family friend, and he was worth his weight in gold.

The insurance carries are looking at it from a life safety perspective.