I've recently adjusted my insurance practices to insure actual cash value at an amount necessary to pay off the lender if something catastrophic happens and the house is destroyed.

Plus, if the worst case-scenario happens and you need to fly out there to manage some catastrophe (squatting tenants, contractor going rogue, interviewing a new property manager, etc.) your work may not allow you to take a week off to do so.But, the good news is there are plenty of opportunities in your own backyard.Every single week I analyze every single 2-4 unit property from Placer County all the way down to Merced.

Generally our banks are very conservative so your risk of a catastrophe are muted, although interest rates have been as high as 28% in the 80's so that would hurt.

In the event of a catastrophe, I want the piece of mind to know that the conversion was done properly and the bedroom are legal bedrooms.

They are currently working long-hours and are never home very much - we don't know when they intend to retire and think that it may take a catastrophic event that forces them to stop working. 

If the place is a catastrophe or the tenants trashed it you will see it with your own eyes, no need to pay someone.

Yes, have a strong insurance policy for catastrophic events in my opinion.

Seems like a no-brainer to me barring something catastrophic happening the properties would be paid off in 20 years.  

How much will the market correct by in the event of catastrophe?

This could save your business from catastrophic loss should something bad happen.You can check out their website, or search YouTube for Clint Coons and watch some of his videos to see what they're all about.