{"id":188096,"date":"2026-06-03T10:56:50","date_gmt":"2026-06-03T16:56:50","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=188096"},"modified":"2026-06-03T10:56:53","modified_gmt":"2026-06-03T16:56:53","slug":"texting-with-darren-nix","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/texting-with-darren-nix","title":{"rendered":"The 3 Insurance Mistakes That Cost Landlords the Most (According to a Guy Who&#8217;s Seen Thousands of Claims)"},"content":{"rendered":"<p><em><span data-preserver-spaces=\"true\">A conversation with Darren Nix, founder and CEO of Steadily<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">Most real estate investors think about insurance exactly twice: when they close on a property and when something breaks. The first time, they shop for the cheapest policy that closes the deal. The second time, they find out what their policy actually covers.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Darren Nix has watched this play out thousands of times. He&#8217;s the founder and CEO of <a href=\"https:\/\/www.steadily.com\/\" target=\"_blank\" rel=\"noopener\">Steadily<\/a>, the landlord insurance platform built specifically for real estate investors, and his company processes claims across every flavor of rental property in the country: long-term, short-term, vacant, mid-renovation, and everything in between.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">So I asked him three questions about what landlords get wrong, when they should reshop for insurance, and what&#8217;s actually showing up in claims. His answers should be on every investor&#8217;s whiteboard.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">1. The Cheap Policy That Becomes the Most Expensive Policy You&#8217;ve Ever Owned<\/span><\/h2>\n<p><strong><span data-preserver-spaces=\"true\">Q: What&#8217;s the most expensive insurance mistake you see new landlords make? The kind of thing that seems fine until there&#8217;s a claim and suddenly they&#8217;re out tens of thousands?<\/span><\/strong><\/p>\n<p><em><span data-preserver-spaces=\"true\">&#8220;Carrying low liability limits like $300K\u2026 when somebody gets injured on the property, $300K is barely even enough to cover the attorney fees, let alone a settlement or judgment. Raising liability limits to $500K or $<\/span><span data-preserver-spaces=\"true\">1millon<\/span><span data-preserver-spaces=\"true\"> isn&#8217;t very expensive, and <\/span><span data-preserver-spaces=\"true\">the extra cost can be offset by a higher deductible<\/span><span data-preserver-spaces=\"true\">. Higher max limits paired with higher deductibles can deliver a lot more coverage for the same price.&#8221;<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">Translation:<\/span><span data-preserver-spaces=\"true\"> The cheapest part of your policy to fix is the part most likely to ruin you.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Any of these events triggers a liability claim, and once attorneys are involved, $300K disappears before the case even gets to mediation:\u00a0<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">A guest slips on an icy walkway.\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">A contractor&#8217;s crew member doesn\u2019t fully fix a safety device.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">A tenant&#8217;s kid finds the pool.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">The investors who get burned are the ones who had insurance and assumed the limits would hold.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The fix Darren describes is the kind of move that costs almost nothing on paper and pays for itself the one time you need it. Trade some protection against the small claim you can probably absorb for protection against the catastrophic claim you can&#8217;t. That trade is almost always worth making.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">Your move<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Pull out your current policy and find the liability limit. If it&#8217;s $300K, get quotes for $500K and $1 million. The math will surprise you.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">2. The Re-Shop Window Most Landlords Sleep Through<\/span><\/h2>\n<p><strong><span data-preserver-spaces=\"true\">Q: Landlord policy, STR policy, builder&#8217;s risk, vacant home: Coverage needs change as a portfolio evolves. What&#8217;s the moment most landlords should reshop their insurance, but don&#8217;t?<\/span><\/strong><\/p>\n<p><em><span data-preserver-spaces=\"true\">&#8220;My rule of thumb is to reshop every three years, by default. <\/span><span data-preserver-spaces=\"true\">I&#8217;ll also reshop if something significant has changed about my property, such as <\/span><span data-preserver-spaces=\"true\">it&#8217;s going<\/span> <span data-preserver-spaces=\"true\">to be<\/span><span data-preserver-spaces=\"true\"> vacant for more than a month, converting to a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/the-ultimate-guide-to-short-term-rental-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">short-term rental<\/span><\/a><span data-preserver-spaces=\"true\">, or undergoing renovations.<\/span><span data-preserver-spaces=\"true\"> The reason is I want to make sure I&#8217;m going to <\/span><span data-preserver-spaces=\"true\">be covered<\/span><span data-preserver-spaces=\"true\"> for the full value of the property in the new situation, for whatever might happen.&#8221;<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is the answer most landlords don&#8217;t want to hear because it sounds like work. But it&#8217;s also what quietly separates investors who get paid out from those who get denied.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Insurance is a snapshot policy. The carrier writes it based on the property&#8217;s condition on the day you bought the coverage. The minute the property changes (for example, a long-term tenant moves out, you start a renovation, you list it on Airbnb, or you leave it empty between leases for six weeks), the policy you have is now insuring a different building than the one you actually own.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Some carriers will deny the claim <\/span><span data-preserver-spaces=\"true\">outright<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Others will pay out at the lower coverage tier. Either way, you find out at the worst possible moment.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The three-year default is the right cadence even when nothing changes, because the market shifts under you. Premiums move. New carriers enter your market. Your replacement cost goes up. Setting a recurring three-year calendar reminder is the smallest possible action with the biggest possible downside protection.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">Your move<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">If your current policy is more than three years old, reshop it this month. If you&#8217;ve made any of the changes Darren listed (vacancy, STR conversion, or renovation), reshop it this week.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">3. The 30% Claim Category Nobody Plans For<\/span><\/h2>\n<p><strong><span data-preserver-spaces=\"true\">Q: You&#8217;ve seen thousands of claims come through. What&#8217;s one type of damage or loss that&#8217;s way more common than landlords expect, and one that&#8217;s way rarer than the internet would have them believe?<\/span><\/strong><\/p>\n<p><em><span data-preserver-spaces=\"true\">&#8220;That\u2019s easy: water damage. Insurance typically covers sudden events like a burst pipe, but not mold removal after months of a seeping toilet ring or a leaking washing machine drain. <\/span><span data-preserver-spaces=\"true\">Water damage <\/span><span data-preserver-spaces=\"true\">is<\/span><span data-preserver-spaces=\"true\"> about 30% of most insured losses, and that doesn&#8217;t include the &#8216;uninsured&#8217; losses <\/span><span data-preserver-spaces=\"true\">due to<\/span><span data-preserver-spaces=\"true\"> water.<\/span> <span data-preserver-spaces=\"true\">The good news is that water damage <\/span><span data-preserver-spaces=\"true\">is<\/span><span data-preserver-spaces=\"true\"> easily mitigated <\/span><span data-preserver-spaces=\"true\">by<\/span><span data-preserver-spaces=\"true\"> more frequent walkthrough inspections\u2014there are usually signs.<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><\/em><\/p>\n<p><em><span data-preserver-spaces=\"true\">The type of loss that&#8217;s exaggerated is theft. It happens, but not as often as people think.&#8221;<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">Three out of every 10 claims is the number that should make every landlord pay attention.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">What Darren is referring to is the gap between <\/span><em><span data-preserver-spaces=\"true\">sudden<\/span><\/em><span data-preserver-spaces=\"true\"> and <\/span><em><span data-preserver-spaces=\"true\">gradual<\/span><\/em><span data-preserver-spaces=\"true\"> water damage. A pipe bursts at 2 a.m.? That&#8217;s a covered claim. A slow leak under a sink that&#8217;s been seeping for four months, rotted out the subfloor, and grew mold inside the wall? That&#8217;s <\/span><span data-preserver-spaces=\"true\">almost never<\/span><span data-preserver-spaces=\"true\"> covered, and the remediation bill routinely runs $10,000 to $40,000.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The thing nobody talks about is how easy this is to prevent. Almost every gradual water leak leaves a trail before it becomes a disaster:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">A warped baseboard<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">A discolored ceiling tile<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">A slightly soft spot in the floor<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">A faint musty smell<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Property managers who do quarterly walkthroughs catch them<\/span><span data-preserver-spaces=\"true\">. Owners<\/span><span data-preserver-spaces=\"true\"> who only see the property once a year don&#8217;t.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The flip side is theft. <\/span><span data-preserver-spaces=\"true\">Investors imagine they need elaborate security systems and <\/span><span data-preserver-spaces=\"true\">inventoried<\/span><span data-preserver-spaces=\"true\"> personal property <\/span><span data-preserver-spaces=\"true\">coverage<\/span><span data-preserver-spaces=\"true\"> because they&#8217;ve seen scary headlines.<\/span><span data-preserver-spaces=\"true\"> Darren&#8217;s data says the actual claim rate doesn&#8217;t match the anxiety. Don&#8217;t ignore theft, but don&#8217;t over-insure against it either.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">Your move<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Add a quarterly inspection to your property management workflow. Check under every sink, around every toilet base, behind the washing machine, and at every ceiling below an upstairs bathroom. The 15 minutes per property is the cheapest insurance you&#8217;ll ever buy.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">The One-Line Takeaway From All Three Answers<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The cheapest insurance fixes are almost always the highest-impact ones: Raise your liability limit. Reshop every three years. Walk your properties.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">None of those <\/span><span data-preserver-spaces=\"true\">require<\/span><span data-preserver-spaces=\"true\"> more money, but all three require more attention. That&#8217;s the spread <\/span><span data-preserver-spaces=\"true\">Darren&#8217;s seen<\/span><span data-preserver-spaces=\"true\"> across thousands of claims, and it&#8217;s what most landlords leave on the table.<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">Did you know that a BiggerPockets Pro membership comes with over $5,000 in potential annual savings through Pro Perks, including discounts on property management, banking, renovation supplies, and investor loans and insurance.\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/pro-membership\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Become a Pro today!<\/span><\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A conversation with Darren Nix, founder and CEO of Steadily Most real estate investors think about insurance exactly twice: when they close on a property and when something breaks. The [&hellip;]<\/p>\n","protected":false},"author":613755,"featured_media":185435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7401],"tags":[],"class_list":["post-188096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/188096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613755"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=188096"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/188096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/185435"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=188096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=188096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=188096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}