If you are going to go without an inspection, some things to pay mind to are;Signs of serious mold indicates leaks or poor ventilation.Large cracks or bowing in foundation walls could indicate settling which can be costly to repair and catastrophic if ignored. 

., The nice thing about new construction is it relieves you from most of the fear of that catastrophic cap ex item that wipes out cash flow. 

God forbid something catastrophic happens and he can't come back to work, who would you call to ensure the project gets closed out?

Big Banks adopt this policy for a reason.I’ve experimented (in solo ventures) with less reserves and never got into a insolvent situation but if something catastrophic would have occurred, the possibility still existed.

The only time I will file a claim in the future I guess is for a catastrophic loss...

Other than something completely unforeseen and catastrophic there is not fundamental reason for it to crash.

Just as Joe said, insurance is meant for covering catastrophic stuff, not run of the mill stuff.

We recently experienced a catastrophic flood at our 6-plex in Dallas, TX.

When I think about it, 95% of the stuff was probably not really a big deal or a financial catastrophe.   

@Diana DorantesI’m not sure a sale is coming unless something major / catastrophic happens.