This can be a catastrophic event waiting to happen you and you thought you were doing the right thing by getting the coverage but guess what, you bought the wrong coverage!

I have enough money to be able to hold during a catastrophic event for 6 months and really about 5 years unless its like a crazy 50% drop in rents or 50% vacancy or something insane lime that.

"B" something catastrophically goes wrong.

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.

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.

I had loans on properties all over the mid west at 60 to 65% LTVs and took big losses as the values dropped and everyone of those was a rental.. tenants stopped paying  it happens.. so don't think for a minute if we have a catastrophe like the GFC that rentals or cash flow is immune.. some areas it was many areas it was not.. that's a fact.   

When there was logging in the forests (I'm not talking about clear cutting), removing the dead trees and underbrush, etc. there weren't so many catastrophic fires.

As a result of a catastrophe, they may actually be considered a repair depending upon what was done and what the cost of said work was. 

Of course, the catch is that everyone always thinks that they are an above average investor, just as everyone thinks that they are an above average driver, even though this is a statistical impossibility ... but the wrecks involved in thinking you are an above average investor when you are not are far more catastrophic than they are with driving ... 

@Laith AliBy failing to carry medical insurance in the US you are making your personal risk of a catastrophic medical event a public risk.