Not only are these extreme events leading to tragic loss, it's also causing sky-high insurance rates and even large insurers to pull out of some states (like in CA for fire insurance etc.).

If managed by the owner currently and you plan to hire people add in a 30% loss of revenue.  

Many investors that bought STR at the top of the market, will now have to sell or absorb losses until time "heals" their mistake.There will be opportunities for patient investors to buy some deals from these motivated investors, some as foreclosures, maybe short sales, as long as the numbers make sense for LTR rents.

If you have a BAD tenant experience on this property as a rental and lose several months of rent and incur substantial tenant damage that is all coming out of pocket whereas if you had even a handful of rentals the performing rentals and the monies budgeted for capex/maintenance/vacancy will carry that sort of loss.

Not sure what steps I can take to mitigate my losses.

The potential for loss of rent and damages could be way worse than the small price of vacancy.

I don't charge differently for different sizes because I don't want to be showing up in a scale to determine if the pet is over or under the weight threshold.

If at the end of the year I have ended up not making as much as my expenses is it technically considered a loss or since I own the house, has the house provided me more income?

But since J properties generally depreciate over time (not like properties back home which appreciate), the idea of sinking cash into a property that is worth less five years from now is not terribly appealing.Like you say, then the question is what sort of yield can you get, and will it cover the deprication losses?

My wife and I had a loss during 08 meltdown, so she now against investing.