You're still way under market, so even if a catastrophic emergency happens, you can exit your position and still make some cash.

I’m currently dealing with a major catastrophe in my 2 family , and despite my recommendations, no one is carrying renters insurance.

I have done inspections and nothing catastrophic.

because we live where we work there has always been a reality that a loss of a job would be catastrophic because we would loose 2 jobs and a house all in the same moment.

(to me, there is little or no difference).Sure, we can make all sorts of educated guesses about appreciation, but at the end of the day, nobody knows. 15 years from now, SoCal could be completely out of water...or it might not. 15 years from now, Cal could experience a catastrophic earthquake...or it might not.  15 years from now, the Cal legislature could enact sweeping rent control...or it might not.60 years ago, there were probably plenty of people who assumed that RE in Detroit would be a great long-term appreciation play (I mean, why not--in the 1960s, Detroit was one of the most productive industrial powerhouses in the world!)...

In the case where the house has catastrophic damages such as fire, tornado, and other acts of God I will receive compensation to rebuild the house if I choose.

The lender wants you to be covered to have a similar structure built in case of a catastrophic event.

The owner is looking for protection in terms of if I got struct by lighting tonight, he would not have anyone with prior knowledge of his properties to manage them seamlessly if a catastrophic event occurred. 

The strategies I outlined are win on steroids for the buyer and catastrophic loss to the seller.

ReInsurance (the insurance your insurance carrier buys to help cushion catastrophic loss) is at or approaching capacity in many markets, and rising rates are unsustainable.This is a significant issue affecting the property & casualty industry (home/Landlord and auto), and pricing correction is anticipated at least through 2024.