Compare this to your insurance deductible, which can be high near the coast and, as you mentioned, can be higher during a named storm.One wind claim during a catastrophic event should not cause your insurance premiums to go up, but if you have had multiple claims in the past 5 years, the frequency of your claims could cause an increase.The reason I do not advise you to call the insurance company first is that it will be entered as a claim on your policy, even if you ultimately do not receive any money from the company.I hope this helps. 

We are looking at closing soon, barring a catastrophe, on our first investment which we intend to flip. 

A middle-aged man can make sound financial decisions, live a financially responsible life, and get hit with a catastrophe that crushes him.I just don't believe that the majority of bankruptcies fall into that category.

In my opinion since you have an equitable interest in the property you should be able to get basic coverage in case of a catastrophic event. 

In the last (catastrophic) downturn, many growing markets experienced little decline in value...my market had a 5%...maybe 10% decline at most (and cash flow actually increased).

Technically Airbnb says they'll handle your catastrophic damage.

I understand your perspective and will do my best to prevent catastrophic failure.

a twist were prop 10 to pass is rattling santa monica city council and likely other cities to comehttp://smdp.com/council-to-consider-unprecedented-rent-control-initiative-to-avoid-catastrophe/167713

Anyway I look at this thing, barring something catastrophic happening, I can’t lose money on this deal.

You may want coverage high enough to rebuild the property in the event of catastrophic loss.