Are you treating insurance like a commodity?
We made that same mistake early in our syndication journey. But now we look for the best combination of value and quality we can get.
Matthew Sutika is Chief Insurance Officer at Obie, a company working to provide a simple, affordable and transparent insurance experience for landlords and investors.
Matt is an award-winning entrepreneur and business owner in the multifamily and habitational insurance sector. He also invests in real estate and early-stage insurance and tech startups.
On this episode of Financial Freedom with Real Estate Investing, Matt joins me to explore the false beliefs investors have about insurance and explain what coverage decisions to look at with your insurance broker after close.
Matt offers advice on getting insurance costs right in your underwriting, sharing his list of GOTCHAS that drive up premiums for multifamily.
Listen in for Matt’s insight on managing rising insurance costs and find out if Obie Insurance is the right fit for you and your syndication business!
Key Takeaways
What false beliefs real estate investors have about insurance
- Think of it as commodity
- See only as expense
Why Matt suggests sitting down with your insurance broker after close
- Make better business decisions
- Look at deductibles and additional programs
Matt’s advice on getting insurance costs right in your underwriting
- Work with broker for accurate estimate of range
- Analyze deal with both low and high end
Matt’s list of gotchas that drive up multifamily insurance premiums
- Located in flood zone
- Built after 1985
- Aluminum wiring
- STAB-LOK electrical panels
- Roof 15 years or older
- Over 3 stories
- Previous losses
What operators can do to manage increasing insurance premiums
- Provide tenants with renter’s insurance
- Work with broker who shops it every year
- Account for market cycles in projections
Matt’s outlook for multifamily insurance over the next 5 years
- Current market worst in long time
- Things likely to improve in summer of 2023
The investors Matt works with through Obie Insurance
- 50- to 400-unit complexes
- New investors and student groups
- Interested in ongoing partnership
Related Articles
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Connect with Matthew Sutika
Email [email protected]
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Apartment Investor Network Facebook Group
Email [email protected]
Resources
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Access Michael’s Free Resources in the Freedom Vault
Review the Podcast on Apple Podcasts
Financial Freedom with Real Estate Investing by Michael Blank
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