Welcome to Asset Management Friday! Today’s episode is all about insurance, and our special guest is Daniel Garzella, President of The Garzella Group, which is an insurance brokerage that specializes in multifamily property insurance. Dan founded the Garzella Group in 2014 and, prior to starting his own firm, he was selected as one of America’s top commercial insurance agents of the year for five years in a row. This episode focuses on the processes one needs to go through to get the best insurance deal, from learning about the different devices available within multifamily and commercial insurance to learning how the requirements change as the asset increases in value. Dan covers all of this and more, sharing with us how The Garzella Group uses its knowledge and expertise to set itself apart from other insurance companies, helping to reduce your insurance costs by doing extensive market research and creating a number of different options for better value. For more on what new syndicators need to obtain a quote, and some of the things that your asset manager might not be aware of, tune in today!
Key Points From This Episode:
- Dan introduces himself and his company, The Garzella Group.
- The different services within multifamily and commercial insurance.
- Changing insurance requirements as the value of the asset or the loan increases.
- The role that consulting groups play on behalf of the lender.
- The increase in cost per unit and the financial stability of the carrier after the $25 million mark.
- How knowledge and expertise set The Garzella Group apart from other insurance companies.
- What new syndicators need to obtain a quote and at what stage of the process they should.
- Some of the things an asset manager might not be aware of, including the impact that the insurance policy can have on the operating income.
- Dan’s asset management superpower – seeing an issue before it arises and taking care of it.
- Reducing insurance costs by doing market research and creating different options.
“The insurance isn’t going to pay the loan amount just because it’s the loan amount, they’re not going to pay the market value just because it’s the market value, they’re going to pay the cost to rebuild it. We would push for the reconstruction cost and we can actually do that using the appraisal that the lender ordered in order to validate the deal to begin with.” — @garzellagpmfra [0:06:11]
Links Mentioned in Today’s Episode: