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.

Do you disagree that a hostile act to any of those three would be anything other than catastrophic?

One thing is certain, the amount of appreciation experienced in certain markets over the past ten years and particularly over the last few years (40+% in some markets) has been life changing for many homeowners and investors...and catastrophic for nonhomeowners or owners in areas where inflation is outpacing values.

However I can tell you from personal experience / disaster... that just getting the ball rolling can be catastrophic if it gets rolling in the wrong direction.

That might happen ( I doubt it) but I do not think it will be as long lasting or as catastrophic as those guys suggest.  

If you cashflow from day 1, it will always cashflow unless there’s some catastrophic increase in expenses, but it won’t always necessarily appreciate.

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

A personal injury could expose you In the event of a catastrophic event.  

The lifetime max rate is 24.33% with no annual cap which makes me a little nervous from a catastrophic worst case scenario perspective.

DIC insurance is designed to fill in gaps in insurance coverage and is most frequently used by larger organizations, looking for protection from catastrophic perils (usually flood, slide and earthquake).