STR Insurance Must-Knows in 2025

Darren Nix podcast
By The Hospitable Team

The world of short-term rentals is constantly evolving, and insurance is no exception. So, in this episode of the Hospitable Hosts podcast, we welcome Darren Nix, Founder and CEO of Steadily Insurance Company, which provides insurance for rental property owners across the United States. Darren is here to help us navigate the STR insurance landscape in 2025 and beyond.

Press play now to find out why STR insurance is essential, how it differs from homeowners insurance, and what coverage you need to ensure your rental property is adequately protected.

If you prefer to read the highlights, we've got a summary of the key takeaways below.


How STR Insurance Differs from Traditional Policies

At the beginning of the conversation, Darren shares his journey into the insurance industry. He reveals that he decided to found Steadily when he sold his startup and started investing in real estate. It took him a week to get insurance for his rental property in Chicago, and the pricing was about six times more expensive than what he was paying for homeowners insurance.

"And that was my first inkling that there might be a better way to do insurance. As I bought more properties over the next three years, insurance remained a pain point, both from the experience and the price." So Darren decided to build Steadily "to be the best in the world at insuring rental properties."

Darren highlights the main difference between homeowner and landlord insurance. Landlord insurance covers damage to the property caused by tenants, so it's priced differently. Tenants aren't as motivated to take care of a property as the owner is.

"You don't necessarily know who the tenant is going to be. And so they have to price in that uncertainty. So the main distinction is that you can't get a homeowner's like an owner-occupied policy on a rental property because it's ineligible."

Darren also explains that short-term rental insurance will be about five to seven percent more expensive than long-term rental insurance because it involves more risk. Additionally, few insurance companies offer coverage for specific STR-related risks, meaning "there's less price competition."

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Discussing Liability Concerns

Protection against liability is a key component of STR insurance, including liability related to amenities provided on the property. Yet many STR owners also offer unique amenities like kayaks, bicycles, and golf carts, which guests take off the premises. Darren explains that liability coverage for such amenities may not be included in a standard policy, so hosts should be proactive as they review coverage options to avoid costly surprises.

"The main recommendation that I give folks on when to be thinking about insurance is when they're going to change something and deciding to start adding kayaks or other amenities to the property that could conceivably be used in a somewhat higher risk activity, like cycling or something. It's a fantastic question to take to your agent and ask them for a meticulous reading of the policy to say, "If something happens to this guest while using the bicycle that I provided, and they're not on the property, is my policy going to pay if they sue me?" Because some policies might and some policies won't. And a careful reading is the only way to figure that out."

Darren points out that the liability clauses on an insurance policy are very similar, whether it's a short-term or long-term rental. However, he encourages property owners to consider the liability limit.

"In the case of long-term tenants with some control and predictability, you can get by with half a million. But in the case of a short-term rental where there's a lot more flux, and you don't know what's going to happen, I look for things in the one to two million range for liability."

How Extreme Weather Events Are Reshaping the Insurance Landscape

In recent years, climate-related risks like wildfires, hurricanes, and other extreme weather events have increasingly impacted the insurance landscape. This resulted in a "massive increase in the price of insurance that we as landlords all felt the pain of for several years in a row." Darren thinks these increases are mostly done, so we even see price reductions in some cases. Yet, in wildfire-prone areas in California, we will see "some very significant rate increases in the coming years."

Choosing an Insurance Provider

Darren emphasizes the importance of choosing the right insurance provider when buying any insurance. He recommends calling "someone who does that type of insurance for a living."

"So when you're talking about landlord insurance, whether you end up working with Steadily or someone else, find someone who does landlord insurance day in and day out. When you ask them a question, "Hey, what's going to happen if somebody takes out my kayak and gets injured on the river?" they have an answer to that question. And they're not just winging it and hoping the homeowner's policy you bought will cover you for your Airbnb."

Tune in to the full episode of the Hospitable Hosts podcast to discover how the right insurance can protect your property from rental-related risks and what changes in insurance policies we can expect in 2025 and beyond.

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