You want to do enough front end work that those mistakes are not catastrophic.

Triple the rent for the same money and it's unlikely you'll suffer some catastrophe on all your properties at the same time.  

You need to understand that flood insurance is catastrophic insurance meaning that you only will want it and should have it in the event of a catastrophic event such as flooding, wildfires, landslides, and earthquakes).

My long-term goal: live what's left of my life without major injury, illness, or financial or emotional catastrophe.

So in a catastrophic loss they are covered for what they put in plus some to help clean up the mess and pay for costs while selling plus a little extra. 

I want my insurance for catastrophic claims.Unfortunately the insurance companies keep and share information on any and all claims and use it as an excuse to raise our rates or drop us. 

My places are doing okay but I see a lot of panicking in a lot of the STR facebook groups where people say they've been doing this for ~5 years and this is the worst Nov/Dec/Jan they've ever had.At the prices some people got in at, a summer where prices/occupancy retreat to 2019 levels (much less lower than 2019 like some people are seeing this winter) would be pretty catastrophic for some. 

I"m seeking to rezone the lots as they are pre-existing, prior to the first zoning codes, which later came in and only granted duplex zoning, so these are legal, non-conforming but can't be converted to separate up/down "condo" sales as lenders won't loan if a structure can't be rebuilt after a catastrophic loss unless its zoned correctly as their collateral is compromised and that is the case in the county where these are located. 

Get those inspections done quickly...and you're probably only backing out if it is something catastrophic....like a roof that the seller has no interest replacing....or extensive mold or extensive termite damage...or something like that.   

Thankfully those mistakes haven't been catastrophic or too costly.