At this point, among other catastrophes, it's summer in SoCal and I really can't stand this heat nor do I especially want to put my co-workers/customers through this next year.

Is there a set amount I should have in reserves to feel comfortable in case something catastrophic happens? 

Barring something catastrophic it is highly unlikely that the home would be uninhabitable from this claim.

I do not have an answer but for the expert that answers the first question.How do you insure against a catastrophic loss such a forest fire? 

They are carrying insurance on the property with myself listed as the beneficiary for the full amount due in the event something catastrophic happened.This investor is experience from everything we’ve talked about and this investor does dozens of deals every year.

I still handle catastrophe claims occassionally.

Phoenix was definitely ONE of the leaders in overvaluation and into the catastrophic loss in home prices and equity.

I have a mobile office that I set up in my truck when I handle catastrophe insurance claims.

But $5k doesn't go very far in the case of a catastrophic event.

Our insurance policy is basically a catastrophe policy covering fire/wind to the building so it doesn't cover it.