If I were to invest out in the boonies and if something ever happened to the market (such as the only job source leaving town) or the some sort of catastrophic damage that happened to the house that the insurance didn't cover and basically render the land to the point that no one wants it, what would be the exit options.

That is, unless, you don't mind owning the asset in your personal name and just making sure you have rock solid insurance to fall back on, in the unlikely even that you are involved in a catastrophic lawsuit at some point during your ownership of the asset.  

Short of catastrophe - i.e. the economy collapses so hard that people are living under the bridge rather than paying for a rental because they can't - you are always going to find people that would rather live in a house than live in a cardboard box. 

Necessary to prevent another world wide catastrophe?

Account Closed What happened in the last go round was catastrophic no doubt.

Barring a major catastrophe, the value of well-located single family home won’t go to zero because people always need a clean, well-maintained, safe and affordable place to live.

I feel like having a home warranty would give me LESS peace of mind :) I also believe in higher deductible landlord insurance on the property, basically as a fail-safe for a catastrophe. 

This is just my personal opinion and certainly there are more experienced investors here, but I think that catastrophic failure (bankruptcy) occurs when you try to get too cute with financial engineering.   

If there's existing contamination, cleanups can be catastrophically expensive. 

Obviously, we'd like to have those filled but none of that is catastrophic.