Episode #62: Navigating Insurance through the Texas Freeze with Omar Hernandez

The Texas freeze of 2021 had a huge array of impacts on the population, the economy, and of course the real estate world. Joining us on the show today to unpack some of these results is Omar Hernandez of the Garzella Group, an insurance brokerage firm based in Scottsdale, Arizona. Garzella deals with commercial real estate from all over the US and focusses on partnering up with local banks to bring extra coverage to investors entering into deals. Omar gives us a brief overview of the basics of the Texas freeze and the most relevant information that pertains to real estate and multifamily, talking about damages such as frozen pipes and the electrical grid failures, as well as the costs of tenant displacement. He shares some of the staggering numbers associated with insurance claims during this period and talks about how this may impact the market going forward. Ultimately the events in Texas this year serve as a warning and a lesson for what is possible, and should not be taken lightly, so tune in to hear it all! Key Points From This Episode:The impacts of the 'Texas freeze' that occurred this year! Timelines for claims, the inspection process, and what to expect.The evolving numbers for the insurance claims that have come through this year in Texas. Compounding effects of the freeze occurring in tandem with the pandemic. Looking to the future of insurance of multifamily in Texas as a result of the freeze. The effects further afield in different markets across the country. What makes a good insurer when navigating the current climate? Omar's opinion on the most valuable lessons to take forward from the Texas freeze. The importance of taking into account investors' interests and increasing NOI: Omar's superpowers! Where to find and connect with Omar online! Tweetables:“We're going to see a shift in which carriers want to jump in and support the Texas market.” — Omar Hernandez [06:20]“The climate change is going to continue. We now know this.” — Omar Hernandez [09:21]Links Mentioned in Today’s Episode:Asset Management Mastery Facebook GroupPassive Income Through Multifamily Real Estate Facebook Group Omar Hernandez on LinkedInGarzella GroupOmar Hernandez EmailMultifamily Risk AdvisorsAsset Management MasteryKyle Mitchell on LinkedInGary Lipsky on LinkedInGary Lipsky on TwitterVirtual Asset Management Summit 2021