Sure if we have a catastrophic event then things could turn on a dime but without some huge catalyst things usually take a bit of time to turn.

We then acknowledge that insurance is the archer in the watch tower, or the knights with the boiling oil, that attempt to keep nasty things like liability claims, fire, windstorms and other catastrophes at bay.

Personally, I believe that insurance should be for catastrophic life altering events.

Homeowner's insurance is most efficient when used for catastrophic loss.

If they have, did they go after them personally and how did the situation work out.In states with snow we have all heard that someone may slip and fall but if this does happen I imaging it must be a catastrophic event to exceed policy limits. 

Don't cut it so close that a potential change creates a catastrophe on your project.  

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.

If that happens, then property owners will end up doing really well if they have strong cash flow and long term financing.I think the risk is for those who have shorter term or variable rate financing.End of the day I think there is still money to be made in real estate, if you buy something 10-20% below market and we get a 15-20% correction followed by a rebound 5-10 years later, its not catastrophic.

- What happens if there's a catastrophic incident (lawsuit, destruction with no insurance, etc)?

Any direct or indirect transaction between the plan and a disqualified party is considered a prohibited self-dealing transaction and is catastrophic to your IRA and your pocket book.Disqualified parties include:The IRA account holderTheir spouseLineal antecedents - parents, grandparents, etcLineal descendants - children, grandchildren, etcThe spouse of a descendantAn entity like a business or trust where one or more of the above have controlling interest through equity or decision making power.Family members not on the above list are not disqualified.