Tag Archives: Flood Damage

by | January 5, 2015 · 9:06 am

Hospitality Industry Management Update: “Looking Back to 2014, Ahead to 2015 at Natural Disaster Activity”

The report says that it is possible that the U.S. may still have two to three years of near-average flood-related damage before the next catastrophic loss occurs, based on projections from historic data.insurance-journal-logo-340 The 2015 flood losses could total between $5-6 billion, with flash flooding events continuing to account for a large percentage of overall annual damage

Fewer tornadoes, a mild hurricane season, lower acreage lost to wildfires, overall less flood  and other damage— all in all, 2014 was not as bad as it could have been for natural disasters in the U.S.

That’s according to global property information and analytics firm CoreLogic, which released its annual Natural Hazard Risk Summary and Analysis detailing the most significant natural disasters of 2014 and providing several projections for 2015.

The report provides a look at the year’s hurricanes, floods, hailstorms, tornadoes, wildfires, sinkholes, earthquakes, tropical cyclones and typhoon events in the U.S. as well as an international snapshot of the hazard events that caused significant damage across the globe.

For more: http://bit.ly/1DpKzDy

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by | December 16, 2013 · 7:05 am

Hospitality Industry Property Risks: Idaho Hotel Suffers Water Damage To Lobby And Parking Garage When “Frozen” Fire Suppression Pipe Bursts

“…it took some time for Boise firefighters to stop the broken line, drain the water and help dry out the lobby of the hotel and Hotel Water Damagethe parking garage…(hotels must) take some precautionary measures to keep pipes from freezing and especially as they start to thaw (such as) wrapping the pipes with heating tape…”

Saturday night at the Hampton Inn in Boise’s downtown a thawing fire suppression pipe burst and sent water surging. A first person video shows the amount of water that came flowing inside the parking garage, which Captain Ramey said was due to a frozen fire suppression pipe that was expanding and thawing.

It was not the first time the fire crews responded to the report of burst pipes as the temperatures in the Treasure Valley started to warm after our recent cold snap. Last Tuesday, pipes burst at the Tavern at Bown Crossing causing damage inside the building and forcing the restaurant to close for a couple days. Also, United Power workers were out last week helping more than 70 customers thaw  their pipes.

General Manager of the Hampton, Erik Hansen, said the pipe burst in the garage area, which is not heated and the water poured below denting one car and covering another with water.

Hansen said they actually had a fire suppression pipe burst during last winter’s cold snap. It was in a completely different area of the building. He says they will now likely be wrapping the pipes with heating tape.

For more:  http://www.ktvb.com/news/Pipe-bursts-and-surges-through-Bodo-hotel-and-parking-garage-235964821.html

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by | June 12, 2013 · 7:24 am

Hospitality Industry Property Risks: Virginia Motel Suffers “Water Damage” To 24 Of 34 Rooms After Torrential Rainfall; Flood Insurance Will Cover Drywall, Paint And Carpeting Repairs

“…the motel owner said she faced a similar situation just 18 months ago. The flooding in September 2011 was even worse, she said, when the Hotel and Motel Flood Risksmotel rooms got more than three-feet of water. Patel said it was more like 2.5 feet this time…  Fortunately, she and her husband – who purchased the motel in 1978 – have flood insurance as 2011 damages totaled $120,000 including new carpet, paint, linens, drywall and more…”

The town of Culpeper continued to dry out Tuesday following torrential rainfall that dumped 5.5 inches of rain in four hours early Monday, sparking flash floods that displaced some 50 residents from an area motel.

Over at Sleepy Hollow Motel on Bus. 29, owner Urmila Patel, of Culpeper, frowned deeply at the massive clean-up ahead of her to 24 of the 34 motel rooms that sustained water damage when the banks of nearby Mountain Run ran over after midnight Monday.

Furniture, TVs, and mattresses from the rooms sat neatly stacked in the parking lot of the motel Tuesday as she waited for the insurance adjuster to arrive to assess damages. Piles of clothes left behind included a toddler’s shirt while discarded food items consisted of bags of bread, pizza boxes, soda cans and milk, evidence of recent occupancy.

For more:  http://www.dailyprogress.com/starexponent/news/local_news/sleepy-hollow-motel-dries-out-owner-says-she-will-reopen/article_3cf4c25a-d2cd-11e2-8196-0019bb30f31a.html

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by | April 24, 2013 · 6:55 am

Hospitality Industry Property Risks: Illinois Restaurant Limits Floodwater Damage Through Installation Of “Special Flood Prevention Equipment”; $700,000 Cleanup Costs In 2008 Lowered To Under $1000 In 2013

“…special flood prevention equipment (was installed) at the McDonald’s after the 2008 flooding; including shutoff valves for the sewer lines, and Restaurant Flood Risksrubberized door dams… only about a half an inch seepage (from this flood) in the building through penetrations in pipes, and stuff like that, unlike 2008, (when there was) 27 inches…(the owner estimated there was) as much as $700,000 on cleanup from the 2008 flood, but only several hundred dollars this year…”

Two eateries next door to each other in northwest suburban River Grove were in very different stages of cleanup on Tuesday, as flood waters from the Des Plaines River slowly receded. WBBM Newsradio’s Bernie Tafoya reports, next door at the famous Gene and Jude’s Red Hot Stand, a big flood cleanup was underway on Tuesday. Workers were seen donning respirators while cleaning up inside on Tuesday, and tossing out flood-damaged debris, while the McDonald’s next door was getting ready to open for business.

It’s not that the flooding wasn’t as bad at the McDonald’s, it was the result inside the two restaurants.

“It’s money well-invested,” Karayanes said.

For more:  http://chicago.cbslocal.com/2013/04/23/a-tale-of-two-restaurants-flood-damage-varies-depending-on-preparations/

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by | December 17, 2012 · 7:00 am

Hospitality Industry Property Risks: Superstorm Sandy "Flood Insurance Claims" In New York And New Jersey Exceed Total For Hurricane Katrina In 2005; Federal Flood Insurance Program Only Product Available

The NFIP provides insurance for homes and businesses in flood prone areas, such as Cape May County. Created in 1969 to fill the gap after private insurers declined to continue coverage for property owners in flood-prone flood insuranceareas, it now covers more than 5.6 million policyholders in 21,000 flood-prone communities.

“The federal flood insurance product is the only product available,” 

By the end of the second day after Superstorm Sandy’s powerful storm surge overwhelmed coastal areas of New York and New Jersey, the National Flood Insurance Program had already recorded more flood claims than the total for Hurricane Katrina, a storm that devastated the Gulf Coast in 2005.

William McMahon III, president of the McMahon Agency Insurance in Ocean City, said Sandy has since far surpassed the notorious Katrina.

Katrina, he said, delivered both flood and wind damage. Sandy’s damage was primarily from flooding. Few claims, he said, have been filed for wind damage.

Not long after Katrina, Hurricane Wilma tore across southern Florida, causing massive destruction.

“Wilma was a small storm. It came across the state from the gulf blowing about 70 mph, but the wind did major damage by the time it hit Miami,” McMahon said. “The wind ripped through all the high rises with 100 mph winds.”

In the wake of those two storms, barely two months apart, insurance companies bailed out of writing property and casualty insurance policies in some areas of Florida. The state of Florida, he said, instituted its own carrier, Citizens, now the largest underwriter in the state.

Florida and Louisiana, he said, are the two most difficult states to obtain property insurance. While flood insurance is available in Florida, it is expensive, particularly close to the coast.

For more: http://www.shorenewstoday.com/snt/news/index.php/ocean-city-general-news/32569-flood-insurance-claims-from-sandy-top-katrina.html

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by | November 19, 2012 · 1:18 pm

Hospitality Industry Property Risks: Superstorm Sandy Increases Interest In Commercial Flood Insurance; 40% Of Small Businesses Never Reopen After Water Damage From Disasters

Under the NFIP, non-residential businesses can purchase up to $500,000 in building and $500,000 in content coverage, while residential businesses can purchase up to $250,000 in building and $100,000 in content coverage. Marsh’s Flood Service Center can place up to $30 million in excess of NFIP flood insurance, including business interruption, with A-rated insurance capacity.

According to NFIP, almost 40 percent of small businesses never reopen following a disaster because of water damage. Over the past five years, the average commercial flood claim has been about $75,000.

Interest among businesses in purchasing flood insurance coverage from the National Flood Insurance Program (NFIP) is increasing in the wake of Superstorm Sandy’s heavy rain, record storm surge, and resulting widespread flood damage, according to insurance broker Marsh.

Although most companies purchase commercial flood insurance through the private market, more are now inquiring about purchasing additional coverage through the NFIP. When used in tandem, NFIP coverage can mitigate or “buy down” large deductibles associated with commercial flood policies or simply provide additional coverage.

For more:  http://www.claimsjournal.com/news/national/2012/11/18/217658.htm

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by | November 1, 2012 · 9:21 am

Hospitality Industry Property Risks: Hotels Suffer Extensive "Water Damage" From Hurricane Sandy, Requiring An "Extraordinarily Complicated Repair Process"

“…when it comes to water damage, trust the experts…hotels in New Orleans made it through Katrina and Gustav with clear emergency plans in place. And where there is water, there’s potential for mold.”

“Mold and water damage may be confounding to many hotel managers because it is not something one customarily knows a lot about,”

Hotels in the affected areas felt Hurricane Sandy’s hardest punch Monday night, but as properties from the East Coast to the Midwest deal with storm damage and after-effects, it’s worth it to revisit safety and security procedures for everything from water damage to dealing with irate guests. Here’s a quick roundup of articles from current sources and Hotel Management’s archives to help navigate the storm:

CRISIS COMMUNICATIONS
First off, Eblin Group’s Scott Eblin shares the five tips leaders can glean from New York City’s Mayor Michael Bloomberg about crisis communications. The gist: project quiet confidence, be consistent and frequent, be relevant, make specific requests, and put the team front and center.

Next check out “Crisis situations call for clear communication plans” from the Hotel Management archive.

CLEANING UP
Learn from hoteliers who dealt firsthand with Hurricane Katrina; when it comes to water damage, trust the experts. From “Lessons learned in the Big Easy,” (Hotel Management, 2009) see how hotels in New Orleans made it through Katrina and Gustav with clear emergency plans in place.

And where there is water, there’s potential for mold. Check out the EPA’s list of ten things to know about mold here, as well as resources for flooding and mold remediation. (Scroll to the bottom of the article).

It will take some time to assess flood damage following Hurricane Sandy, but one lesson hoteliers have learned over the years is to hire the experts when it comes to mold damage. As Colin Reed, Gaylord Entertainment’s chairman and CEO, said following the extensive Gaylord Opryland flooding in 2010, “flood damage requires an extraordinarily complicated repair process.”

Not only is the repair process something best left to experts, the legal issues also may be too murky to handle on your own. “Mold and water damage may be confounding to many hotel managers because it is not something one customarily knows a lot about,” said Karen Morris, a lawyer specializing in hotel litigation and Hotel Management’s legal columnist. “The good news is that managers do not need to be even semi-experts in this field. Rather, hire an expert and follow his/her advice concerning frequency of inspections, methods of inspection, and necessary clean up.”

So what about insurance claims? Check out Hotel Management archived articles about contingent business interruption coverage and steps for handling an insurance claim.

For more:  http://www.hotelmanagement.net/property-security-and-safety/what-you-need-to-know-about-cleaning-up-after-sandy

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by | August 18, 2012 · 6:24 am

Hospitality Industry Property Risks: Washington DC Restaurants Damaged In 2011 Flood "Reinvent Themselves" By Rebuilding With "New Concepts"

“…The establishment was hit hard by the flood…the owners used some insurance money to rebuild. But they also took the opportunity to come up with a new concept for their establishment…”

“…(the owners) renegotiated the lease and worked with Washington Harbour so insurance covered 85 percent of the about $5 million needed to rebuild the restaurants…”

Three restaurants at Washington Harbour are preparing to reopen after the spring 2011 flood that covered parts of the K Street complex in 10-plus feet of water. Tony and Joe’s Seafood Palace and Nick’s Riverside Grill are expected to fully open at the end of this week, and Farmers and Fishers plans to reopen as Farmers Fishers Bakers at the end of October. All three closed after an April 2011 storm during which MRP Realty, the company that manages the complex, raised only three-quarters of the floodgates that block the establishments from the Potomac River.

Nick Cibel, whose family owns both Tony and Joe’s and Nick’s Riverside Grill, said the flood was devastating, but he and his relatives have made the best of the situation.

“It was complete destruction at both restaurants, and everything had to be thrown away and rebuilt,” he said. “We are taking full advantage of that by reinventing ourselves. We want to be known by our food, not just the waterfront.”

Both Joe’s and Nick’s have been operating with outside seating and a reduced menu since about a month after the flood, while the interiors have undergone renovations. Tony and Joe’s has an updated design that allows for a wider, unobstructed view of the river. Nick’s Riverside Grill’s square footage has increased by 25 percent, and the restaurant will carry more international cuisine.

For more:  http://www.thegeorgetowndish.com/thedish/flood-damaged-restaurants-set-reopen

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by | May 12, 2012 · 7:11 am

Hospitality Industry Property Risks: Illinois Hotel Suffered Over $2 Million In Water Damage In 2010 After 13.5 Inches Of Rainfall Caused Flooding In Downtown Area

“…The Mechanical Rooms were flooded and heating and air-conditioning had to be taken out and replaced. The entire lower level of the building was destroyed, including irreplaceable antiques being stored down there. The structural damage was significant…”

The rain started on July 27, 2011, and by 1 a.m. on July 28, the flood gates were ordered closed. Everything the City of Galena had done to help prevent the flooding of downtown wasn’t enough as the rain came, the sewers backed up, and the water rose to 27 inches in some places. One of those places was the historic DeSoto House Hotel.

Owner Dan Kelley surveyed the damage while making sure current guests were alright. The air-conditioning was out, as well as the hot water. Some guests left, but most stayed, insisting on paying full rate for their stay. The hotel never closed its doors.

For more:  http://www.journalstandard.com/news/x1266607408/Flooded-DeSoto-House-Hotel-renovation-nears-conclusion

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by | April 30, 2012 · 6:51 am

Hospitality Industry Flood Risks: Tennessee Hotel Owners Sue Federal Government For "Negligence" In Managing Spillway Resulting In "100-Year Flood" Levels Two Years Ago

Gaylord wants $250 million for damages to its Gaylord Opryland Hotel and the Grand Ole Opry House

 “…the Corps opened the spillway at Old Hickory Dam…the discharges were so high they caused the Cumberland River to rise above the 100-year flood plain and cause all this damage…”

Gaylord Entertainment plans to file a lawsuit today against the federal government, alleging U.S. Army Corps of Engineers and National Weather Service negligence led to major damage to its luxury hotel during the Cumberland River flood two years ago.

The suit will contend that the Corps was negligent in opening the spillway at the Old Hickory Dam on May 2, 2010, and the Weather Service failed to notify the public that water levels would reach the 100-year flood levels that devastated homes and businesses.

Gaylord and A.O. Smith filed initial claims with the Corps and the Weather Service for compensation in October, a requirement under the 1946 Federal Tort Claims Act, which governs how legal action can be filed against the federal government.

Once the two agencies rejected the Gaylord and A.O. Smith claims, the companies were free to file a lawsuit but had to endure a six-month waiting period.

For more:  http://www.tennessean.com/article/20120430/BUSINESS01/304300044/Gaylord-to-sue-Corps-over-2010-flooding

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