This is why there hasn't been a large catastrophic earthquake in Utah for a long time.

You'd probably learn a bit about electric work also.I've been fortunate not to have too major catastrophes with tenants.I had a roach infestation which was like something out of a horror movie.Tenants removing doors, spray painting graffiti on cupboards and doing severe wear and tear.

Also, your utilities shouldn't be factored when you move out, so in terms of 2 years, you'll break a little more than even.740/month = 8880/year1st year = -4440Down Payment = -6300Total = -10,7402nd+ year = 8880/yearYou should be positive in the 3rd year 1st Qtr overall for your investment minus major catastrophes, exes, axes and aliens, should be good to go...at least on this investment providing your numbers are spot on.What year do you plan to refi?

In 2008 when there was catastrophic decline in property value all sorts of predictions were made.

They are a specific type of catastrophic policy that "umbrellas over" your other policies and kick in if something happens that exceeds your other policy limits.

I just read a separate post suggesting that investors should only have the absolute minimum insurance coverage for catastrophic events only. 

That being said, life DOES happen, and to have no way to redemption after life has taken a wrong turn (think divorce, catastrophic accident, cancer, etc) is unconscionable, in my book.I see that you have an engineering and finance degree....surely you are not making an argument that everyone who graduates with debt is "unqualified" academically, or with an "undesirable" course of study?

They have a catastrophic care policy in place for cheap about 70 bucks a month.

I'm going into a few distressed/rundown properties to give them a preliminary look over. I'm no pro (obviously), but I have watched a few episodes of Holmes Inspection on Netflix :-), and from what I have gathered the...

Everybody is different, and there is no right or wrong answer - it's comfort level.Obviously, because of the field I'm in, I do see the value of having insurance, but oftentimes investors may not feel that way if they have thin margins on a property, and are faced paying a large chunk of their profits for an insurance policy; especially in areas that have higher property premiums due to natural catastrophes, i.e., Florida.The bottom line is whatever amount you are willing to lose dictates if you will get that policy or not.