I am almost done with my first flip .It has gone well a few hiccups but nothing catastrophic to my long term profit .

Try to always accomplish a win-win situation if you can, tarnishing your name early on can be catastrophic for your future.

Lock in your insurance rates as long as possible then I would even figure out some sort of swap mechanism or short mechanism for companies that will suffer as a result of hurricane losses - you can buy leaps once you identify a company that will suffer in the event of a catastrophe.

The flip side of that coin, of course, is potentially catastrophic results of a downturn.Everyone will (and should) have their own risk preference based on their personal circumstances and goals.

@Brent Rieman it doesn't necessarily take something catastrophic to get someone to 480 if the big problem is just that they don't have enough history in general.

Someone will know who you are and if a lawsuit is brought against your entities because of some catastrophic loss, it is not likely that you will be able to avoid discovery of where the true ownership lies. 

I recommend you have some amount of coverage for catastrophic events and injuries.

I also have a $175,000 line of credit at the ready if something catastrophic happened.

I have read that you shouldn't make any claims on insurance unless its catastrophic to keep costs down.  

So if something happens within the property owned by the LLC, in a catastrophic law suit, the most they can get is the property (Unless you screw up your LLC by commingling money, failing to maintain the company veil, etc...).Regarding outside liability protection (if something is happening in your life and you are sued for it), some states have better protection than others.