Thanks to few catastrophic storms and big natural disasters, Arizona has the third-lowest average homeowners insurance premium in the U.S., according to the Insurance Commissioners.Property taxes: 8.38.

I've been using a general rule of thumb that considers the overall property appraised value less the land in the event I would have a total catastrophe and have to rebuild the entire home. 

Currently we are looking at making sure to protect our assets in the event a tenant gets hurt or something catastrophic happens.The questions I have are:1.

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." 

Its not catastrophic  like I have seen in other areas  IE a house not maintain for a year or so can be out of plumb by 4 to 8 inches and require extensive work..

In the past, we have seen Freddie Mac give forbearance to Borrowers who have been directly impacted by catastrophic events.

Only a total catastrophe will cause you to lose money. 

- Leave them in a secure location in case something catastrophic happens?

While that does seem like a low probability, it’s a pretty catastrophic scenario. 

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.