Tag Archives: Flooding

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/

Comments Off on 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

Filed under Flood Insurance, Maintenance, Management And Ownership, Risk Management

Tagged as , , , , ,

by | March 18, 2013 · 7:14 am

Hospitality Industry Property Risks: Minnesota Hotel Suffers Extensive Flooding And Electrical Equipment Damage From Broken Water Line

“…the waterline break occurred during a planned repair project and also flooded the skywalk tunnel under the street between the hotel and the hotel water pipe burstdowntown Duluth Public Library…the line that broke was not a city waterline but the hotel’s own service line running into the building…it appeared that a private contractor replacing the service somehow severed the line, triggering the flood of water…”

Officials with Duluth’s Radisson Hotel said Saturday evening that they’re still working to assess the damage caused by a broken waterline earlier this week, and there is no timeline yet for reopening. The waterline break on Wednesday night flooded the downtown hotel’s basement and disrupted electrical service to the building. About 80 guests had to be evacuated to other hotels.

“Hotel ownership and management teams are working as quickly as possible to determine the extent of the damage caused by the flooding and what equipment and work will be necessary in order to open the hotel,” hotel officials said in a news release Saturday evening. “As of (Saturday), that assessment continues and the Radisson is unable to provide an estimated time frame at this point in time. The safety and welfare of our guests and team members is first and foremost in determining when we will be able to open.”

Officials said they continue to work with other hotels in Duluth to relocate guests who had reservations at the Radisson. They said an update on the hotel’s status is expected by Wednesday. The Radisson has 268 guest rooms, in addition to its restaurant, meeting and banquet facilities.

For more:  http://www.duluthnewstribune.com/event/article/id/261688/

2 Comments

Filed under Insurance, Liability, Management And Ownership

Tagged as , , , , ,

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

Comments Off on 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

Filed under Flood Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Tagged as , , , , , ,

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

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

Filed under Flood Insurance, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Tagged as , , , , ,

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

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

Filed under Claims, Flood Insurance, Insurance, Maintenance, Management And Ownership, Risk Management

Tagged as , , , , , , , ,

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

Comments Off on 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

Filed under Flood Insurance, Insurance, Liability, Maintenance, Management And Ownership

Tagged as , , , , ,

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

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

Filed under Flood Insurance, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Tagged as , , , , , ,

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

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

Filed under Claims, Flood Insurance, Insurance, Liability, Maintenance, Management And Ownership

Tagged as , , , ,

by | · 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

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

Filed under Claims, Flood Insurance, Insurance, Liability, Maintenance, Management And Ownership

Tagged as , , , ,

by | February 12, 2012 · 8:33 am

Hospitality Industry Property Risks: North Dakota Hotel Water Pipe Breaks Flooding Entire Hotel; All 40 Guest Rooms Evacuated

“The water pressure actually broke a wall down….They had to evacuate all 40-some rooms that night.”

Late in the night on Jan. 22, a water pipe on the north side of Candlewood Suites burst, causing the hotel to close until further notice.

According to WooMi Phillips, assistant professor and head of the hospitality and tourism management department at NDSU, the water damage began somewhere in the third floor ceiling.

Candlewood Suites, although located on the north side of NDSU’s main campus just west of the Fargodome, is not technically not part of the university. However, the hotel caters to various departments on campus, offers a discounted rate to families of students and even houses a lounge and classroom for the hospitality and tourism management students.

“Initially, we were concerned about the laptops and the computers and printer in the lounge,” Phillips said.

Nichole Ascheman, operations manager at Candlewood Suites and former NDSU student, contacted assistant professor Dipra Jha about the situation early Monday, Jan. 23. Jha taught three hospitality classes in Candlewood Suites.

For more:  http://www.ndsuspectrum.com/news/water-damage-drowns-hotel-1.2773145

2 Comments

Filed under Claims, Guest Issues, Insurance, Maintenance, Management And Ownership

Tagged as , , ,