Also keep in mind that short of a catastrophe, this renter is going to have the money no matter what.  

You want it to be a catastrophe before you are at risk of losing a tone of money.To me, this deal isn't quite there yet. 

When calling for an additional insurance quote, the agent told me about a catastrophic payout of over $20k involving water.

These can cause catastrophic failure of the leach field. 

If you’re planning to hold an investment for 20+ years, going through a recession around year seven will not be catastrophic.

I really have insurance mostly for catastrophic events like a fire or tornado. 

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 you have any sort of catastrophic event in the property and you get a notice that the you have x amount of days to correct the deficiency prior to the HAP payment (section 8 payment) being stopped for non compliance, make sure you as the owner/agent are the one that is there to meet the inspector for the inspection, do not rely on the tenant because they will ALWAYS LET YOU DOWN...

Again, as unfortunate as evictions are, even a substantial increase would just be going back to 2016 levels, not some catastrophic anomaly.​Delaware had almost two months between the end of its state moratorium and the beginning of the CDC moratorium.

Leaving you with $2500 in case of catastrophic unihabitability.