I'm a realtor and I have about 5 years as a State Farm catastrophe claims adjuster.  

I use insurance to cover catastrophic loss - high deductibles, insure for around 75% of rebuild cost, $2M umbrella, and low premiums.  

Currently the homes are all insured with Travelers.Thank you not sure exactly what that is but we have a proctor policy  which is like the old Zurich Policy where you can add and subtract properties monthly and  your only billed for the months you have the policy in force.. to me its not the best insurance as deductible is high.. they are not very good at paying claims and I just see it basically like catastrophic insurance but they never look at the properties and nothing is ever denied.. but its more expensive.

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.

@Jacob Shumate the purpose of insurance is to save you if something catastrophic happens.

Greetings BP family,I anticipate my amateur story will bring harsh criticism, but I really need some help before the situation snowballs into catastrophe.

It is impossible to predict changing times, structure conditions, insurance costs and local catastrophic abnormalities that can occur.

I don’t believe I can collect enough of a premium for the 1/20 probability of catastrophic $1000+ problem like a dog ripping apart the sofa.

Moreover, the catastrophes these types of properties produce aren't worth any amount of cashflow.6. 

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