Tag Archives: Flood Insurance

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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by | August 11, 2011 · 6:23 am

Hospitality Industry Property Risks: Rhode Island Hotel That Suffered "Extensive Damage" From River Flooding In 2010 Reopens After Insurance "Largely Covers Reconstruction"

“…The hotel’s lobby, front desk, restaurant, meeting rooms, guest rooms and information technology equipment were badly damaged, and the facility, which had celebrated its grand opening in September 2008, was forced to close…”

“…The (reconstruction) cost was largely covered by insurance… The chain had hoped to reopen its Rhode Island location within a year but was delayed by in part by a business restructuring…”

NYLO Providence/Warwick has undergone extensive renovations on the first floor, which filled with four feet of water after the nearby Pawtuxet River breached its banks in March 2010. Michael Mueller, chief executive officer of the Texas-based NYLO Hotels chain, would not say Wednesday how much was spent on reconstruction. Susan Shaw, the new general manager, said the 163-room hotel will open with between 35 and 40 employees, down from 60 at the time of the flood. It will add employees and should reach full capacity by early next year, she said.

During a recent fire inspection test, in which the emergency lighting system was activated, Shaw said it happened to be raining — prompting an unpleasant flashback.

For more:  http://www.boston.com/news/local/rhode_island/articles/2011/08/10/warwick_hotel_damaged_in_2010_floods_to_reopen/

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by | March 14, 2011 · 8:09 am

Hotel Industry Flood Damage: Hawaiian Hotels Damaged By Tsunami Would Only Be Covered By Flood Insurance And Commercial Policy "Difference In Conditions" Coverage

Typical property insurance policies written in the United States exclude flood and earthquake damages.

A tsunami is a tidal wave often caused by an earthquake; it is a flood and excluded under most policies. Generally, these perils are only covered by endorsement or special policies.

The normal insurance industry approach to uninsurable hazards has been to exclude them totally. This has left the problem with governments to resolve, and has led to a number of national disaster insurance funds or pools, either completely run by the government as in the case of the U.S. Flood insurance scheme,

Those in vulnerable areas should buy flood and excess flood coverage to insure for tsunami events.  It should be noted that automobile, vehicle, life and health insurance provide coverage for these events. Some mobile home policies and marine forms cover these risks as well. Accordingly, these catastrophes are not completely uninsured when they occur in the United States.

For more:  http://www.propertyinsurancecoveragelaw.com/2011/03/articles/insurance/insurance-coverage-for-tsunami-floods-and-earthquakes/

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by | June 4, 2010 · 10:42 am

Hotel Flood Insurance: Flood Damage To Hotels Is Very Complicated And Expensive As Much Of The Mechanical And Technological Infrastructure Can Be Below Street Level

“Flood damage requires an extraordinarily complicated repair process. We have had to manually test every aspect of our mechanical, electrical, information technology and power-generating systems in order to understand what works, what needs to be repaired, and what needs to be replaced. There is an entire city of infrastructure which operates under the Gaylord Opryland campus, the majority of which was fully under water, and thus the assessment process has been extensive.”

“…the company is exploring any potential legal recourse related to the inaccurate predictions company officials received from government officials, who originally thought that the Cumberland River would crest well below Gaylord’s levies.”

The cost to clean up and repair Opryland and other Gaylord Entertainment Co. properties in Nashville will be $215 million to $225 million, the company announced today. The company also plans to lay off more than 1,700 employees June 12.

The Opryland Resort & Convention Center will be closed until Nov. 15, the company estimates. 

Gaylord’s Nashville properties were damaged in historic flooding the first weekend in May. The repair cost is higher than initially anticipated by Reed, who said last month that, while he expected it to exceed a $50 million flood insurance policy, he guessed estimates as high as $200 million were overblown.

Read more: Gaylord: Damages exceed $200 million; 1,743 to lose jobs; Opryland closed until mid-November – Nashville Business Journal

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by | May 8, 2010 · 5:42 am

Hotel Flood Insurance: Gaylord Opryland Resort (Nashville, TN) Purchased Maximum $50 Million Flood Insurance And Is Unsure If Coverage Will Be Sufficient

The $1 billion-plus hotel on the banks of the Cumberland River had $50 million in flood insurance. Asked whether that amount would be enough to cover the damages, Reed said: “Maybe, but we just don’t know.”

That amount was the maximum level of flood insurance Gaylord could buy from any insurer “because we sit next to the Cumberland River,” Reed said. The company had tried to buy more, but couldn’t find any insurer willing to go above $50 million of coverage.

(From a Tennessean.com article)   It could be up to six months before the flooded Gaylord Opryland Resort and Convention Center reopens, and the full extent of damage is still being assessed, Gaylord CEO and Chairman Colin Reed told The Tennessean today.

“We have water in the tunnels; we have no understanding of the damage to the power plant. It could take three months, four months, five months or six months. The fact of the matter is that until we get the water out, we just don’t know,” Reed said.

He also said the hotel’s staff will remain on the payroll for at least the next six weeks and will play a role in helping the vast facility rebound. It’s unclear what happens with people’s pay after that initial period.

A flagship of Nashville’s tourism industry, the Opryland Resort & Convention Center was evacuated Sunday night as floodwaters spilled over the Cumberland River, filling parts of the hotel with 10 feet of water. Electronics systems and other high-tech equipment are at risk.

It will take a week to get floodwater pumped out, Reed said, and by then the company may have a better understanding of the full extent of damages. “Until we’re able to get to the technology, we just don’t know.”

http://www.tennessean.com/article/20100506/BUSINESS01/100506076/-1/nsitemapXML/Opryland-hotel-may-be-closed-for-six-months

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