Unless it's a catastrophic capex related issue, the need for a capital call does not come up overnight for sponsors and neither should it for LPs. 

If a storm is deemed a catastrophe that is a different story.  

At MINIMUM it holds it up, and in all expectations of reality it RAISES them. 1 scenario and 1 scenario ONLY do real estate prices significantly drop, and that is CATASTROPHIC calamity of assorted kinds.

In fact, I go with the highest deductible as possible and plan to only make a claim if something catastrophic happens.Duplexes (in my experience) rarely get broken into once occupied.

I also have a $175,000 line of credit ready if something catastrophic happens.

You want to make sure whoever you go with has excellent ratings and is able to stand behind their policies, especially in the event of a major catastrophe.

I also have a $175,000 line of credit ready if something catastrophic happens.

Steadily might be a good policy for a place where nothing happens or one for total catastrophic insurance, but not for something in between.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

But yes you're acting like an insurance company, you're pocketing the premium and betting that a catastrophic event won't occur.