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.

It's impossible to plan for the catastrophic events, you can plan for the smaller issues, roof, A/C vacancy, etc.  

If they had a bunch of medical bills from 5 years ago due to some unexpected catastrophe, their credit score will be hit and I might otherwise pass on a tenant who should still be a good fit.If you offer a free pre-screening so applicants don't loose an app fee based on the criteria, they usually opt to provide a free credit report printout.I sometimes make exceptions with a higher security deposit too.

Inflation is a real monster, though and if anyone has any doubt about the catastrophic effects of inflation, study Chile.

But the reality is buy & hold is difficult to screw up in a catastrophic way.

The reason I keep them high is because I don't plan on using them unless it's a catastrophic event (such as your fire).