Tag Archives: Flood Insurance

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 31, 2012 · 6:26 am

Hospitality Industry Business Risks: Hotel Owners Must Consider "Business Loss/Interruption Insurance" As Part Of Comprehensive "Disaster Insurance" Coverage

“…many hotels don’t have business interruption insurance because it comes with higher premiums and deductibles…(one hotel) close to the Kentucky Derby area was hit by a tornado…the hotel wasn’t damaged, but they lost all of their utilities. If they hadn’t had that business loss insurance, they would have lost all of that income they would have generated during the race.”

After two tornadoes hit the same Midwest region in the United States within a year and caused extensive hotel damage, disaster insurance deductibles are on the rise and hoteliers are mulling their coverage options.

  • Higher deductibles – While premiums appear to be remaining steady, insurance companies in the Midwest are charging a higher rate of percentage deductibles to help keep costs down, he said. As an example, if a hotel had $100 million in coverage and there was a 5% deductible, the deductible would be $5 million.
  • Wind and flood insurance premiums in the Midwest remain relatively flat overall, with slight increases for some hotels. In other parts of the country, such as coastal areas, the cost of wind and flood insurance has risen 8% to 10% on average, according to sources.
  • Reinsurance options—insurance that is purchased by one insurance company from another—are available, as are percentage deductibles based on the amount of coverage rather than a flat rate.
  • Wind deductible buy-back insurance—which provides a buy-back policy that reduces the higher percentage deductible—with deductibles most likely still will be higher than the flat deductibles previously offered.
  • Storm surge coverage is available under a flood plan or wind storm plan. Some policies exclude floods altogether.
  • Business loss/interruption insurance - Hotels impacted after the 9/11 terrorist attacks and hotels in California affected by the 1994 Northridge, California, earthquake would have benefited greatly from business loss/interruption insurance.

For more:  http://www.hotelnewsnow.com/Articles.aspx/8282/Hoteliers-mull-disaster-insurance-options

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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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by | April 3, 2012 · 1:37 am

Hospitality Industry Flood Risks: Ohio Restaurant Struggles To Reopen After "Flash Flooding" Damaged Buildings Not Covered By Flood Insurance

“(the owners)…had to replace all of the flooring and drywall in the restaurant. Some of the kitchen equipment had to be repaired, and everything else either was discarded or thoroughly cleaned…”

The buildings were not covered by flood insurance, but insurance did pay to fix the damage to their vehicles.

Not even 18 inches of water inside their restaurant, 3 feet of water outside and $60,000 in resulting damages and lost sales can curb the determination of Mark and Glenna Jones to reopen Clay’s Cafe, located on West Main Street in downtown Hebron.

The eatery, which has been in business for 15 years, closed March 15 after it was flooded as thousands of corn stalks came rushing into town. The Joneses were hoping to reopen by today, but have pushed their opening day back to Thursday.

The couple, who live in front of the restaurant, had all three of their buildings and four vehicles damaged in the flash flood.

For more:  http://www.newarkadvocate.com/article/20120328/NEWS01/203280308/Flood-damaged-Clay-s-Cafe-set-reopen-Thursday?odyssey=nav%7Chead

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