Securing your property with insurance is an important part of due diligence. Although the common practice is that acquiring insurance is left to the final stages, it is still in the investors’ best interests to secure one early on. In this episode of Highlights, we look back at our conversations with insurance broker J Darrin Gross and Multifamily Risk Advisor Bryan Shimeall.
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As a commercial real estate insurance broker, Darrin knows his stuff. Darrin talks about why it’s important to have a trustworthy insurance broker long before a deal is done. By having someone like this on your team, you could easily run properties by them before making any commitments. Meanwhile, Bryan shares what you need to know about insurance in this particular niche, giving us a peek at what they do, how they support their clients, and what their partnership looks like. Looking deeper into the industry, Bryan tackles the problem experienced by habitational insurance, how it is affecting underwriting deals, and more. Listen now and learn some important wisdom about real estate insurance!
Key Points From This Episode:
- Find out when the ideal time to contact an insurance broker about a property would be.
- When buying a property, get the seller’s experience of it, so ask for a loss history.
- Why it is so important to establish a relationship with an insurance broker early on.
- How insurance companies do their due diligence to ensure that a property is not a liability.
- Bryan talks about who his typical clients are.
- How Bryan supports his clients and what kind of relationship does he have with them?
- Bryan elaborates what habitational insurance is and why you need to have one.
- What to do when getting an estimate for your insurance?
“Start that process early and get the information, communicate with your insurance broker, and get an actual number.” – J Darrin Gross
“If somebody’s looking at a property somewhere, they need to ensure that property.” – Bryan Shimeall
“Having your coverage conformed to lender guidelines, especially Fannie or Freddie guidelines, are becoming more and more of an issue, especially with regards to things like roof ages, wiring, and things along those lines.” – Bryan Shimeall
Links Mentioned in Today’s Episode:
About J Darrin Gross
Darrin is an insurance broker based in Portland, Oregon. Since 1990 he has worked with real estate investors to protect their portfolio from ruin. Since 1997, he has invested in real estate; flipped single-family, single-family & small multifamily properties in Oregon and Florida. He is the host of the Commercial Real Estate Pro Network Podcast, providing weekly interviews with investors & professionals regarding asset & risk management.
About Bryan Shimeall
My name is Bryan Shimeall and I am with Multifamily Risk Advisors (MRA). MRA, on a national scale, provides insurance and risk services for apartment investors, managers, and developers. As one of the few multifamily-specific insurance specialists in the country, MRA understands the mechanics of the industry and we support our clients in a variety of ways that are unique to the industry. Our service platform allows MRA to operate as an “outsourced risk manager” and a true partner focused on mitigating risk while reducing per door cost. Over our 20 years, we have gained an in-depth understanding of the apartment industry and its needs. As such, we have developed numerous innovative solutions to meet those needs by leveraging our relationships throughout the insurance world. We excel in the proper placement of resources, products, and services while supporting the overall growth of a portfolio.
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