I have a home daycare in Washington State structured as a LLC , is my home considered a business or personal asset?

You have the right concern, but you frame the question the wrong way. The issue for anyone who renders personal services is that an LLC or corporation provide no (repeat NO) insulation against liabilties related to those services. These entities are regularly oversold, and misleadingly sold, as being able to provide such protection. If a child for whom you are providing care is injured, you will be sued personally. Your LLC provides no insulation against this claim. Because you are the one actually doing the caring, you will not be able to hide behind the LLC -- you will be responsible for the consequences of your own negligence. The only way to obtain any protection against this claim is by buying insurance. Your homeowners insurance does not cover a business you conduct in your home -- you need a separate commercial policy.