Jan 5, 2021
How many times have you watched those insurance commercials and asked yourself about your own coverage? Do you know what happens in case of an emergency? Will your policy cover the loss of rent and the cost to rebuild your apartment investment if necessary? If you don’t know, you’re in the majority. In fact, 80% of investors are not properly insured according to Jeremy Goodrich.
Jeremy helps investors protect their commercial real estate and apartment investments. Surprisingly, he says that 4 out of 5 investors he speaks with are not properly insured. While most investors treat insurance as the last item, this could be a huge mistake if you do not understand your coverage options.
Jeremy is one of the principals of Shine Insurance and host of the REI Clarity podcast. He appeared on the show to educate investors on protecting their investments. He helps break down the important aspects of insurance, discusses the difference between being on your team and not just a vendor, and shares a guide for real estate insurance.
Partner: Text “EQRP” to 72000 and receive a special eQRP report on taking control of your retirement money
Key Insights on Commercial Real Estate Insurance
Your mindset about insurance needs to shift to the understanding that it’s key to protecting those assets you worked so hard to build.
The number of insurance companies willing to insure large habitational risks (apartments) is shrinking
The insurance cost for a small multifamily investor will be much higher than an investor with tens of thousands of units.
Make sure your insurance agent understands occupancy and how it works.
In bigger multifamily deals, connect your lender with the insurance agent, and let them figure it out.
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Diving into the multifamily world is hard to do as an insurance agent, and I fell on my face a couple of times, but that’s necessary to learn.
Most Recommended Book:
Talk Triggers (Jay Baer)
Wish I Knew When I Was Starting Out:
I’ve tried hard not to think about all the things I wish I knew then because I learned so much.
Best Place to Grab a Bite in Bloomington, IN
Michael’s Uptown Cafe