Drew 2: How does Insurance affect our cash flow?

Heyo! Hey, Andrew Postell here, ready for our newest edition of The Drew Two. Let's talk about insurance today. Yeah, property insurance on our rental properties, but this concept will apply to almost all insurances. So I got an email from one of my insurance carriers today about a renewal. Let me show you what they sent me. So here it is. Hey, we got your insurance. It's renewing at $2,360 a year. I thought, hmm, is that a lot? I think that's more. I went to my trusty Excel spreadsheet. Remember us talking about this previously? My current policy is $1,709. And since I stay organized, I just went and double-checked my, my current policy. Sure enough, $1,709. So why is my insurance company raising my rate 38%? Mainly because every 3 to 5 years, insurance carriers analyze their book, and they realize that they are overexposed in certain classes, right? Certain geographical areas, certain age demographics. It can be a variety of things. Maybe they said, hey, we got too many Andrews insured. So what they do when they analyze their risk, they make the decision to increase the rate. Increasing the rate means they might lose customers, which is the point. If the risk is too much, they either change the price so they feel comfortable about the risk. We've talked about that before, right? Or they just get rid of the risk entirely. It's business. I don't invest in mobile homes. It's business. I just don't feel comfortable with it. Same thing here. It's business, which is why you need to shop your insurance Every 3 to 5 years. You can still use your same agent, but shop your carriers. It might save you 38% on your policy. Hey, hope you enjoyed this recent Drew 2. We'll talk with you soon.