Insurance pros like Jeremy Goodrich can save you a lot of money - whether during a catastrophe (hopefully not), or on your mundane monthly payments.
We know life is full of risks, from daring entrepreneurial ventures to the daily challenges of family life.
But when it comes to the big risks, like investing in commercial real estate, we all need help from our friends and allies.
Our guest today is a master of risk management and insurance. With a reputation for making the complex simple, he's one of the top go-to gurus for top real estate investors seeking clarity and peace of mind.
Jeremy’s Profile
linkedin.com/in/reiinsuranceguy
Websites
Phone
Address
PO Box 5187 Bloomington, IN 47407
Live free. Get Educated. Master Your Money.
Subscribe to our Podcast here!
https://investingstuffyoushouldknow.buzzsprout.com
Youtube Videos now up as well! Subscribe here:
https://www.youtube.com/channel/UC1kV60Yxx4ntgLqAwOCR1Pg
Insurance pros like Jeremy Goodrich can save you a lot of money - whether during a catastrophe (hopefully not), or on your mundane monthly payments.
We know life is full of risks, from daring entrepreneurial ventures to the daily challenges of family life.
But when it comes to the big risks, like investing in commercial real estate, we all need help from our friends and allies.
Our guest today is a master of risk management and insurance. With a reputation for making the complex simple, he's one of the top go-to gurus for top real estate investors seeking clarity and peace of mind.
Jeremy’s Profile
linkedin.com/in/reiinsuranceguy
Websites
Phone
Address
PO Box 5187 Bloomington, IN 47407
Live free. Get Educated. Master Your Money.
Subscribe to our Podcast here!
https://investingstuffyoushouldknow.buzzsprout.com
Youtube Videos now up as well! Subscribe here:
https://www.youtube.com/channel/UC1kV60Yxx4ntgLqAwOCR1Pg
Hey, everyone here at the Investing. Steph, you should know, podcast. We have a pretty cool guest with us today. Jeremy Goodrich. He will be talking about a lot of things, but he really has a focus in the commercial real estate. a commercial real estate advisor. He has his own podcast, really, his focus in that niche, that this niche or this area of building protection, commercial building protection in part. It's very relevant for myself here in Minneapolis, Minnesota. We have a apartment complex. We had some incidents and we had some, some whole situation right there that maybe Jer and I, Jeremy and I will talk about a little bit later. But Jeremy, thanks for being with us today here, sir
Jeremy Goodrich:Johnny, I'm super excited to be here, excited to talk Risk Management Insurance, having a great service team for your program and everything else in between. So it's gonna be a good conversation. I'm looking forward.
Johnny Nelson:And that's this area, it's not the most exciting and the sexy topic, but as business owners in the real estate space, whether it's multi-family, industrial, these other, I guess the risk profile goes down depending on what you have in there. If it's just an rv, I guess it's maybe not quite as risk as having human being live in there, but this is so important. And as you and I were chatting, just pre-show a little bit. I had we had a fire at our newer building, nearly brand new building here in Minneapolis. And then we had another fire related incident with the sprinkler head. So we had two claims and our. Insurance carrier dropped us at the end of the year. And then barely could get coverage again. And then our premiums went up by three or two, I think by two. Two times at least two. Two or three, I forget. Sorry. But a lot, like really, gut, a gut punch.
Jeremy Goodrich:Yeah. First give us
Johnny Nelson:a, your noa, right? Yeah. Give a little bit about where you focus what's your kind of, your what your philosophy, and we'll start getting into some specifics and other.
Jeremy Goodrich:Okay. Yeah. I was an elementary school teacher for 13 years before starting an insurance agency. In 2013, I left being a teacher started an insurance agency with my wife and business partner and got really focused on real estate right from the beginning. So I didn't know anything about insurance when I started it. I, I came from being a teacher. And so I started helping first time home. And just helping them with the insurance piece. But I noticed they had questions about everything else too, about what an escrow period is, what the closing is going to entail, how to find a realtor or lender all the different folks in the process. What's an inspection as opposed to an appraisal, right? Like all these details. And so I just started going out and finding answers to those questions. And posting it on our YouTube channel. And I've just fallen in love with real estate ever since. I've always been a service provider, always from the insurance and risk management perspective, helping first home, ti first time home buyers became helping investors in small residential one to four family units. And that then became helping multi-family investors, which has now turned into our commercial real estate program. It's a national program. I take care of folks with portfolios as small as a hundred doors and as large as thousands of units. Wow. Wow. And that's across most asset classes. I don't do mobile home parks, but I do self storage. Multi-family office, retail flex Industrial. And so I work in all of that space and just have enjoyed it the whole time. I love helping people understand a small piece of their story. And, being a part of everyone's journey, I feel like for every investor that's listening to this show, you should know that your service team is one of the key pieces of what you do, right? Obviously, your property managers, if you have those, are number one sitting right below them is probably attorneys and financial advisors and folks. Basis, certainly your broker relationships, but in the mix is your insurance advisor too. And so I'm just always trying to be a valuable part of the service team while educating people about the risk management piece and about the insurance piece and why it is the way it is, even if sometimes we don't like that. That's the fact.
Johnny Nelson:You think it's inevitable, Jeremy, that insurance will just must remain one of those complicated things that only people that like, live and breathe, they have the space. Can explain like your c p A and taxes, tax, tax prepar or C P A and accounting and some of these other things. Some things just seem to remain in, in the, in enigmatic state. Do you feel like insurance is one of those things that you just it just really, it's not so much, it's not so much like it's unavailable to the common person, but do you feel like the only the people that really eliminate have it, it's a must. It's a must connection.
Jeremy Goodrich:Yeah, it's interesting cuz insurance on its base level is really simple, right? Like we, none of us listening to this show would be investors if insurance didn't exist. The only people who could invest in property would, people would be people who have enough money to be able to absorb the loss of a 10 million property or a lawsuit that costs you 5 million. And I know I'm not in that boat. I'm not sure if you're in that boat, Johnny, but a lot of listeners obviously aren't. And so at the foundation, it's really an approach. Community financing the biggest risks we take. And so if we look at it that way, it feels really positive, right? Yeah. Okay. Let's all put in a little bit of money every year and then when some, when you have a fire at your property, from that pool of money, we're gonna throw some of that money out to help you get back on your feet, get back to where you were before, without having a financial catastrophe. That's it's all insurance is right
Johnny Nelson:then. That's super, that's amazing to just break it down like that. But go ahead. But then why does it seem so, like complex and impenetrable and the policies, and there's like all this giant, document and disclosures and your policy. Why if it's like simply like you just said, like you just simplified there or to a sentence or two. Why do I have a 10 page. Page. Yeah. Or a
Jeremy Goodrich:document. So it starts from what I just described, right? But then the pool of money is perceived as one thing, and then someone says I had this bad thing that happened to me. I want some of that money. And then the people who are responsible for the pool of money, the insurance company are like, wait a minute. That's not really what we created this pool of money for. We better create language in the agreement that says, oh, that's not included. And so then they add that, right? And then someone else tries to take outta the pool of money for something that wasn't really the meaning of the thing in the first place. A different thing. And so then now there's a new clause, and now there's a new clause. And then over the course of time, lawyers and legal and all the back and forth between. Folks who wanna pull from the pool of money, which there's nothing wrong with wanting to pull from the pool of money. That's what it's there for as long as you're being honest in your approach to it. But enough people aren't honest in that process. That it, it creates these 10 20, I think 150 page legal documents with decades. I
Johnny Nelson:I was even off that. I was, like I said, 10 or 20 page, like you, 10 times that, like a hundred or 200 page,
Jeremy Goodrich:and if you really look at it from and I'm a nerd who loves to dig into these policies and get into these forms. Yes. If you really look at it it's a truly just a back and forth between an insurance company that's trying to collect premium for a specific thing, and people who often rightfully so are just trying to take that money back out because they put some money in. I think
Johnny Nelson:that's a, you nailed the crux of the issue. So Jeremy, wherein you have essentially two that's. Insurance seemed like a one joint agreement of uneasy agreement of tension. That's obviously the agree the insurance company is there to be in business, and then of course the operator, the multi-family operator or investors is there to also be in business. And then this linkage is obviously they have competing. Interest I wanna sustain this insurance company and have it be a thriving business. Clearly I can't pay out to the moon. But also if my building is burning down or there's other kind of disasters I need, I want to have that covered, which is why I have that in the first place. So I think you articulated that. Very well there.
Jeremy Goodrich:Can I give one example that I think is so imminent right now, especially for commercial investors. Roofs are a big claim part, right? And a big part of commercial properties. When you look at your expenses, if you're picking up at a property and looking at your CapEx and what you're gonna have to spend, if you've got. A hundred thousand square feet of roof space, you've got millions of dollars in a potential cost associated with replacing roofs, and there's all these folks out there saying, Hey, why don't you just file an insurance claim and get a free roof? And so there's this tension between the idea that when a roof gets old, we should just be able to replace it through our insurance policy, and the fact that's not really what insurance is for. Yeah. Insurance is there for if your roof is damaged by hail or something like that. And if there's a legitimate damaged scenario. But if you just have an old roof, That's something you should just have to replace. I am an, I've re replaced two roofs recently that were just old. They just needed to be re replaced, right? And so this is an example of there's all this language that's being built into insurance policies, a C V coverage versus replacement costs, things that take lots of explanation to really understand. That are trying to defend insurance companies from people trying to replace their roofs just because they're old. And so that's a really good example of tension. I've got a client who's replaced lots of roofs because they were able to make that work. And it's that's fine. And. Don't complain when the insurance costs go up. You know what I mean? Because that's the other side of it.
Johnny Nelson:You have the I'm just, I'm gonna ask you direct question here, Jeremy. I see that you have a insurance agency, so is your, but also you have a kind of this on what I'd love you to explain what it is the advisor role to, like you said, a minimum of a hundred doors and committee thousands. Let folks know your, perhaps your bias or your perspective here, and maybe you don't have one, but let's just say, just tell people where you're coming from and so they know, who as we and I discussed what your perspective is.
Jeremy Goodrich:Yeah I think I. Risk management is at the bottom of all this. Insurance a tool, right? And risk management is what we're doing. When you do due diligence, when you're picking up a property, if you're picking up a flex industrial, it's, 20,000 square feet, four buildings that you're considering, you're gonna submit an l o I, and then if that's accepted, you get your PSA going, you start doing D due diligence. And what are you doing in due diligence? You're making sure that you clearly understand the risk that you're taking by investing in this. Due diligence. Due diligence is something that everyone knows they should do, and it's simply a risk management process. To manage risk, you have to do three things. Identify the risks that you have. Understand what that risk is at a deeper level and decide what you're gonna do to manage it. And so due diligence is identifying and understanding, so you can decide if you wanna manage it or if there's some red flags and the risk is so high that you just don't want to follow through with the deal. Awesome. That's awesome, man. Yeah, go ahead. Yeah, please. Yeah. If we think about risk management as our decision making process, I love the movie top Gun Two came out recently. Yeah. These are both examples of, Hey, let's go do this impossible thing with these amazing airplanes to save the world, or whatever. And the whole conversation is how are we gonna pull this off? You could say that same thing in a different way. How are we gonna manage the risk? Yes. And the whole process is about that. So I think that's the perspective I always come from is I'm a risk manager. I help to advise people about the risks that they're taking and how to mitigate those risks. And with a lot of my larger clients, we create risk management strategies that are a similar to your business plan, because that's also gonna get us cheaper insurance. But along the
Johnny Nelson:way, so if you, so would you just to for that. So yeah, he'll present that to the insurance companies and. They'll read that? Or how does that work? How does that actually quantify into less? Okay.
Jeremy Goodrich:Yeah. So at the highest levels when you get into the thousands of doors multiple millions of dollars of insurance premium. There are ways to get your premium reduced because you have quantity. Yes, some of those are a master policy. Captive insurance, there's a whole bunch of different approaches that we can make, but these companies are taking on big risk, right? They're taking the 10 tens, even hundreds of million dollars of risk, and so they want to understand that you're doing everything you can do. So that risk management strategy. You say, here's how we manage risk. Here's our checklist process. Here's our systems we implement with our property managers. Here's how we go every year. And make sure that we're managing the risk in general of tenants and things of that nature. And insurance companies will say, we wouldn't say yes to most investors. Ah, yes. Yeah. But because we see that you are managing the risk, we're going to say yes to you. And that's where.
Johnny Nelson:What is and what would and again, this is maybe too case specific. What would be a reduction in policies when an insurance company? Would be aware of a good management risk policy or procedure process, like you said for a portfolio.
Jeremy Goodrich:Like how much premium would you see
Johnny Nelson:go, would you say five or 10% on your premium?
Jeremy Goodrich:Yeah. I think, when you get into captive that's a really hard question to answer. Okay. No
Johnny Nelson:there's, I would be treading there like this may be rear very case. But I wanted give to throw it out there if there was something.
Jeremy Goodrich:No, I'm helping someone save up to 30% right now. Incredible. Because of what they're doing. And then when you talk about captives, not to get too in the weeds, but when you talk about captives if. Premium gets paid to the captive and it doesn't get paid out in claims. You get to keep a lot of that money. So we're putting millions of dollars, in some cases, into a fund that's there to pay out if claims happen. So if you end up paying it all out, then it's gone. And it's very similar to if you just had a normal insurance policy, but if it doesn't pay out, then you keep the. Oh, is
Johnny Nelson:that like a, is that, and I don't even know about this then, just cause I'm not some master of multi-family. I know some things about some things, but certain, clearly there's way more. Sure. Yeah. So captive, is that almost like a escrow account where like both sides don't get it, but it's sitting there ready to go, like you said, it's maybe it bears interest in some other things, you can invest it, but it's sitting there. Is that what that is? Yeah
Jeremy Goodrich:It's essentially you create your own insurance. Amazing. Wow. And we could do a whole episode on captive. I love captives. It's one of my favorite approaches, but it's really for anyone listening, unless you're paying a million dollars in insurance premium or more Yeah. It's not a solution for you. Sure. So that scale
Johnny Nelson:definitely has to have the scale. Piece of that as a lot of, as you get larger into portfolios and other things of business, things make sense at the larger scale and they become more interesting. And of course the downside is more serious or potentially, but also that's why there's only, that's why you can have this additional load of accounting and compliance and folks like yourself to guide these things and put these into, implement, implement these. Absolutely. Yeah. Give us the, so that's awesome, man. So I'd love to hear you touched on it a bit maybe already, but just give us, start from the beginning, the what you do with these larger por, maybe let's start with a hu more, probably more the people in my circle or at this smaller end of the portfolio. So let's talk with those folks maybe with a hundred doors. Maybe sub a thousand. Obviously those, the people in above, above a thousand are another they start in other areas. Talk to us the hundred to, I don't know, 500 door person. What what does the process look like? What do you, how does that, how does those conversations go normally?
Jeremy Goodrich:Absolutely. So I think one of the most important things someone can take from the conversation is that, having a good advisor, someone who explains things simply. Puts together policies thoughtfully and has access to a bunch of companies so they can make them compete free against each other and bring the price down. I is at the heart of it all. I think that in general, for portfolios of that size, we're ensuring by location If you're a multi-family investor and you're purchasing a 50 unit property, usually you're gonna put an insurance policy just on that property cuz you got a separate l C and maybe you have a syndication or whatever it is you're doing. And so we're gonna ensure that property on its own. And I think some of the things your listeners can do is when you're early in the process, make sure you really have a clear penciled number. I think a lot of people listen to gurus and they say, oh, just put$200 a door for insurance. That's a really big mistake. Insurance tends to be between five and 7% of your revenue from a property, right? Yeah. And so it's not the biggest. But it's a decent number. It's a significant number. And so if you put$200 a door and it's$600 a door, you're talking about a significant swing in the potential of that property. So I guess my first piece of advice is even when you're penciling make sure you're getting numbers from someone who knows what they're doing and knows what they're talking about. And then as you get into the process, obviously once you've got that signed, p s a is really the way point to me where you say, okay, I really need a hard proposal. Here's what we think the closing date's gonna be. Here's who my lender is. Let's rock and roll. Let's get these numbers rolling and take it from there. And then making sure you have, if you've got a good advisor who understands fi fanny, Freddie compliance and stuff like that, then that person should just make the insurance piece. One tiny piece of the conversation, something to check off at the end, and it just gets knocked out.
Johnny Nelson:I love that. The perspective of the team approach, Jeremy and just like I've again, I'm just sharing learnings that I've had is when you should, when should you start talking to bankers? And clearly, it's oh, we should all reach out to, financial institutions, but early in the process, make them a part deep part of the convers. And I think the philosophy is also in this case, when you really start under understanding the fundamentals of the multifamily business or commercial real estate more broadly. That is like someone like yourself is such a key partner versus just slapping number and they're like, oh, my, all my coaches or my mentors say to, put two or$300 a door versus a percentage. And then, which is obviously gonna adjust, depending on the area and the asset class. So bringing that person in, like you said, is really kinda shift your mind, develop that relationship. And then of course the challenge of course, Finding people like yourself and other people that you really trust that know you're on their side and bring in their into close counsel. That's probably the biggest thing because then like we can all just Google stuff. It's I don't know what the heck from what heck, just like bunch of names and stuff and it's overwhelming. How would you say people would Know that they're working with you, like someone like yourself, which I think you're per a trustworthy team. An individual. Let's just say you try to find something else out there and there's lots of people out there, lots of different things going there. How do you know that? Your insurance advisor or insurance agent is on your side, really like someone that you wanna work with? What's some high level tips on that
Jeremy Goodrich:piece? Absolutely. Great question. I think first it comes back to that, what I said before, that they're able to explain things clearly. If someone, sure, if you walk away from a 15 minute conversation from with an insurance advisor feeling dumber than you were bef, than you felt before the conversation. I love. Yeah, this is not the right person for you. Yeah. The ability to explain things clearly is not only a skill of communication, but it also proves that someone's not trying to hide something, right? And so I think that's a key too. Does the person understand the asset class, especially multi-family right now, insurance is insane for multi-family right now. It's an incredibly. Hard market insurance companies that I've been writing that I've been placing multi-family insurance with for years are saying no to me in a way I've just never seen before. Seriously? Yeah. We're seeing not only are we seeing significant increases in premium every, at renewals, but we're seeing companies flat out saying, Incredible. And there's a variety of reasons for that. So if you're going to someone who doesn't know this asset class, yes it, there's a high likelihood that they say something at the beginning and then as you get closer to closing, it starts to fall apart for them. And now you're a week before closing and suddenly your insurance agent doesn't have a solution for you. And, obviously that's not what you want. And then an independent agent is pretty important because especially in the commercial real estate world. The state farms and the folks like that can do small commercial, they can do home and auto really well. But they're only one company, so they're not making other companies battle. And most, mostly really when you get into larger stuff, those captive companies aren't gonna be able to those state farms and stuff like that aren't gonna be able to help you. But so independent would be the other piece. Let us battle, let us make the company's battle. And the last point I would make on this is the choice to go out to three or four different independent agents and saying, Hey, can you quote me this property? I think, especially when we, if we come from construction backgrounds and bidding and all that kind of stuff it's this is how things work. You send it out to three or four people you get it back from them and you take whatever you think is the best solution. Here's the problem. Most good brokers like myself have access to very similar insurance companies. So you're not getting some like big, broad, different thing from one broker to another. Yeah. Also, if companies see submissions from multiple different agents, Yep. Companies actually decide they don't want to offer the best for you because they see that you're not committed to the agent. So that's just a red flag for them a little bit. I see. It's hard when you're first getting started cuz you're like I don't wanna just trust someone that I don't even know, which is
Johnny Nelson:why, like the first two things you said are like the sequence. Of the, of your process is what you just said at the first two things. And then the second thing is hey, if you wanna skip the first two, you're shoot, you're shooting yourself at least in one foot with maybe shopping, shopping at to a couple of different agents. And then of course, obviously, with technology and other things that clear the insurance company, which probably gonna be some of the same providers at the back end of that are gonna. See the address and the same, see the property and see the name like, yeah, this is, they're getting shot, this is getting shot from a couple different spots. So they're gonna know that like super
Jeremy Goodrich:fast. Yeah. And I guess the la the last thing there is, if you do have someone you trust if you do decide to go to multiple agents, tell the person you trust the most. Because once a market is blocked, so Liberty Mutual is an example. They do a lot of apartment complexes. I place a lot of coverage with them. If you tell someone else, they're gonna block Liberty Mutual. And so when you come to me, I can't use that market anymore. Okay. And so even if you trust me, even if you feel like I'm the person who ultimately would be the best advisor and the best team member, yeah. If you've told somebody else first, I. I can't help you. Okay. And so that's just some advice on how to play this part of the investing game. Yeah, for sure. Man, on the best that you. As
Johnny Nelson:we turn the final go to the final section of the show, Jeremy you and I chatted pre-show about we're just gonna make it personal here, so I have a apartment building a me, a Midsize 40 unit here in Minneapolis, Minnesota. We had some we know that the laws here, maybe audience may be, may or may not know, but the the landlord tenant laws are definitely in the favor of the tenant. And of course, there. Partial, some covid backlog and some other things. I know it seems like a long time ago, but there's still residual effects to that, at least, a year ago. So we had a fire in our unit. We had someone broke a sprinkler head out. We had, so we had a couple of claims, really large claims, and took out multiple units and eventually our insurance company dropped us here. You and I had a pre-show, and I know you had a little some insights, some guidance and some recommendations. Just when I tell you that story, tell. Start from the beginning and tell us what you what your recommendations are when those things happen or when you find yourself in that situation.
Jeremy Goodrich:Yeah, a couple things. The first thing is I hope the insurance com company took care of you in the loss situation because all this other stuff comes after, right? But ultimately, you paid your premium. I'm hoping they took good care of you in those losses and made you whole again, through that process. There probably was some back and forth and some figuring it out and it probably took a long time.
Johnny Nelson:Overall. Yeah, overall it was like, if it was a hundred percent was the best ever and zero was this disaster, it was probably sitting into 75%. So I'll
Jeremy Goodrich:take that. Yeah I think that's good. So that's the first thing I would say. The second thing I would say is it brings up the importance of requiring tenants to carry renter's insurance Yes. And carry renter's insurance. It probably$300,000 or something like that. Now, I don't know how bad the fire was, and I don't know how the water, bad, the water damage was. But I'm assuming that your tenants didn't have renter's coverage because you could have gone, it sounds like both of those were the fault of the tenant. Yes. And you could have gone to the tenant's policy and had that the bad thing covered through their policy. Therefore, Avi avoiding the loss on your own policy and avoiding the situation that you ended up on the backend. That's not always the case, but it is a good reason to think about. Making sure you require renter's insurance and why that's important. Does that make sense? Yes, it
Johnny Nelson:does. That's tremendously helpful. That's very clear logic there. And yeah we, as any, like even dumb owners, I'm not saying a good manure dumb one, but that's required. But also the challenge there of course is that, is if they just drop it and we, move through a couple of property management teams and there's a lot. Things falling through the cracks there. So what what's the challenge, just real quick, I don't wanna lose your train of thought there. What's your challenge? What's the answer then when people can just simply drop insurance and you wouldn't know or you don't know?
Jeremy Goodrich:Yeah. So what we like to do is something called a tenant liability policy. Yes. This is a policy that the owner takes out. Yeah. And the owner can actually make money off of it almost can become a cam. And it's, so you say in your. We can provide you a policy for$20 a month, or there's a policy we have to protect for X, Y, Z for$20 a month. If you opt out of it, you're saying that you are pro, you're getting your own renter's insurance and will require you to show proof of that. Do you wanna opt out or do you wanna opt in? Most people will just leave it on there. Even if they have a renter's policy, oftentimes they'll still just pay the 20 bucks or whatever a month. And so you've created a defense mechanism inside your own system, and if you do it right, you're charging 20 bucks a month, and then the insurance company's only charging 10 bucks a month, so you're also making$10 a month off of that exchange. Yes. And then if something bad happens, you hit the tenant liability policy first in that scenario. So you've created a barrier between your insurance companies and tenant mistakes. And while doing that made a significant amount of money and extra, if you're making an extra 10 bucks per tenant that can add up to some serious. Money. So Yes. Yeah, that's something that we do a lot to avoid that. The only other way to do it is to collect renters declarations pages. And I think we all know that's a really big pain. Yeah.
Johnny Nelson:Yeah. And of course, all, there's lots of ideas and policies and things out there, and it's how do you enforce it? How do you manage it? And somebody's dropping and come and going and all these different things. Like you'd have to hire somebody just to maintain this thing, and make sure all that is all the, it's properly
Jeremy Goodrich:being followed. And that's the kind the beauty of the tenant liability policy is you just say, if you wanna opt out of this, then you have to show us the declarations pages. So you make it hard to opt out of people, don't op opt out of it. And then you have that barrier created there. I
Johnny Nelson:gotcha. Okay. Awesome. But so sorry that, that was a sidebar, but you were flowing through your some ideas when you heard that story.
Jeremy Goodrich:So then the last thing comes to the frustration that you have right now, right? Which was you had some claims they got taken care of, like they should have you, they weren't your fault. You can learn something from them, but that's the scenario. That's why you buy insurance. Yes. Then the insurance company turns around at the end of the year and says, You know what, we're not gonna ensure you anymore. Yeah. So a couple of
Johnny Nelson:It's not us, it's you. I was like, ah, that's right.
Jeremy Goodrich:Yeah, exactly. It's and it creates so much frustration and I agree with that frustration when this happens to our clients, which it does happen. It's frustrating and we're frustrated too, and we help folks solve it like you did. But just to give you a sense from the insurance company standpoint, a lot of the best priced insurance companies are off, also incredibly picky. They almost want to say no. And you're trying to talk them into saying Yes. Yes. And then they do say yes. And we've got a price that's decent and we feel good about it. It's fi four,$400 a door,$500 a door, whatever it is. But they're ready to turn off the spigot as soon as you give them a reason to do yeah. And renewals are a time built into the system every year where an insurance company can change the agreement by increasing premium changing coverage. Or they can decide it's just not something they want to do anymore, and they can cancel the insurance policy. So that's, you wouldn't want a business to be forced to do business with you. And so renewals are the time when a business can say, you know what the relationship isn't working out. We've lost a lot of money on this deal. And yes, We're gonna pull out. So seeing it from that perspective, I think it at least helps to make more sense. It doesn't make it any better for sure. But then you turn around, you get penalized, and I don't have great answers for that. You have a couple of claims on your record. You can't get in with a tier one company that's gonna give you the best options. You're having to go to a tier two or a two tier three company. And the companies that are gonna say yes to a risk that has more claims are gonna charge more premium for it, right? And they're just saying, Hey, you've shown a history of having, X amount of money going out. And so for us to take the risk on, we're gonna have to get more money coming in. I'm not saying insurance companies are like all good or whatever, but these are just the financial perspectives that they're coming from. And so I don't have great answers for you. I think it with when my clients. Canceled brought by a tier one company because they had multiple claims. What I do is I go out and find the best next option. Yeah. And it's not gonna be at the same price. Even if that company wouldn't have canceled, let's say that company that paid those claims would've decided to keep you, you might have had a doubled premium anyway. Because they can change the price however they want. So yeah, I think that's just the scenario and it feels crummy and I don't have a great answer for that. But the goal is just to go out and find the best solution that you can and then further increase your risk management strategy so that you don't have as many issues making sure tenants have. Coverage and renter's policies, or you have a tenant liability policy to create a barrier between your policy. These are all the risk management strategies we do to make insurance work a little better.
Johnny Nelson:Absolutely, man. So summing that up, there's not necessarily a great answer cuz that's just how life, it's like a sequence of of unfortunate offense and this is how the business works and this is the perspectives that are, that, that are had and that are just the uh, realities of how these things work. Built. Wrapping up the final piece here, Jeremy. What is the best way for folks I see, I know that you have a podcast and maybe you have a social favorite social media platform. How can folks get in touch with you and and
Jeremy Goodrich:learn more? Yeah, so I talked about having the right ballpark for penciling and at shine insurance.com/ballpark, we have something you can do nine yes or no questions. Get an immediate ballpark for that given property. So that's a really good thing to just book bookmark in your browser using your penciling so that you get some numbers that are pretty decent. That's at shine insurance.com/ballpark. That's a great way to find me. LinkedIn is my social media of choice. You can certainly find me there. And the podcast is called Managing Commercial Real. Risk, and we talk about managing commercial real estate risk, just like we did in this conversation right here.
Johnny Nelson:That's really good, man. Thank you for joining us. Thank you for being here. Of course. Now turning down, turning now to the audience. Thank you for listening to another episode of the Investing Stuff. You Should Know. And this kind of, this discussion that we just had is really the things that you should know. And if you're an investor, an owner, an operator you need to learn about these things and get in contact with folks like Jeremy and his team to learn to know and to grow so you can protect the things that you're, the wealth that you're trying to create for your, you, yourself, your family, and those that are closest to you. So until next time, thank you Jeremy for being with us and for the audience here.