If a roof is leaking, and it's not due to hail damage or another "catastrophic event" then you've got to buy that roof.Not all insurance policies cover broken pipes. 

Most Americans are one personal catastrophe away from living on the streets.  

From my experience, I would say 90% of the insurance policies that come to me have potentially catastrophic flaws for upstart investors. 

@William Garcia if the numbers work on a given property you can give it a second look, but take two things into account.1) where it is on the flood map, not all properties in a flood zone are at risk of catastrophic flooding make sure that you know where your property lies and its risk of flooding before making the decision (females flood map can be found here https://msc.fema.gov/portal/ho...)2) FEMA is supposed to revisit the flood maps and flood insurance rates will be adjusted in October 2020 (this may have changed as a result of COVID-19) so the numbers and your ROI may look a bit different than your initial projections if and when the change happens.Hope this helps

I read your post to be saying what it was, which was water heater catastrophic failures being caused (across the board) by that T&P issue you linked the video. 

With rentals a cash reserve is necessary, the more properties held which are in different locations (eggs in one basket) actually require less reserves as a total of a portfolio as risks of a catastrophic loss (physical or economic) are reduced.

In the likelihood of a catastrophic legal situation, a judge that sees that your Jason Ownership LLC owns the property that Jason Management LLC manages and Jason  (personally) is the owner, operator, and main employee of both organizations is likely to let the "corporate veil" be pierced and let the plaintiffs come after you personally.

I'd imagine you also want dwelling insurance as well to cover fire and similar catastrophes.

Just think of how much liability can be created if all the properties are owned by one entity and there was a catastrophic environmental problem!

If you are insuring an older home, and the building codes have changed over the years, in the event of a catastrophe, it will cover the cost to, for example, upgrade the entire electrical system to current standard; or upgrade windows to hurricane standards; etc.