Folks who had inadequate policies really got hurt during the PF/Gatlinburg fires a few years back, as many insurance companies invoked the co-insurance clause to limit their losses during that massive catastrophic event.  3)I have noticed that some folks are referencing their lot values and furnishings when referring to "replacement cost." 

You offer them first deed of trust on the property and the right to foreclose as well as list them as additionally insured on your property insurance so that if something catastrophic happened and the insurance company had to pay out they could be protected.

The smaller property would seem the better way to go here since your leveraging 100% there is going to be less maintenance, lower chance of catastrophic events that could cripple you. 2.

I'm also a firm believer in prayer but I've always been taught that Prayer doesn't do much good until you do your part.....I'm not waiting for the catastrophe before I begin to prepare.

The housing catastrophe was caused by lenders making bad loans and sloughing them off immediately to unsuspecting government agencies and Wall Street, leaving them without a chair when the music stopped.

My goal is not to hurt your feelings, but to keep you from making a mistake that will be financially catastrophic. 

Statistically speaking, these catastrophic circumstances are extraordinarily unlikely but if you can hedge the “extraordinarily unlikely” with $200/yr of extra insurance coverage you obviously should.  

Ending up on the wrong side of an investment without a safety net can have a catastrophic impact on your life.

This could be because it's either 1) in very poor condition or 2) maybe there's someone catastrophically wrong with it that doesn't show up in pictures and he doesn't want you coming back after him after the closing? 

Amsterdam, I've heard through the grapevine, has an odd problem with their water system- it tends to erode certain parts of plumbing systems and leads to weird and catastrophic failures.