Category Archives: Flood Insurance

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

Leave a comment

Filed under Flood Insurance, Hotel Industry, Insurance, Magazines, Management And Ownership, Risk Management

Hospitality Industry Guest Issue: “Bar Patrons Refused Drinks Charged in $700,000 Trump Tower Flood”

“..The men had gone to the hotel’s bar where they were served one drink, Antonietti said. Afterward, they were denied additional drinks because they appeared intoxicated,Image Antonietti said. Koenemann and Nitch, both 25, were then seen going into the fire exit stairwell, the prosecutor said. The men then allegedly turned on a water valve on the sixth floor that shoots 250 gallons of water out a minute…”

After they were refused service at the Trump Towers 16th floor bar over the weekend, three suburban men allegedly turned on a water valve in a stairway in the ritzy hotel, causing $700,000 in water damage.

Two elevators and some marble flooring were damaged as a result of the men’s actions, Assistant State’s Attorney Erin Antonietti said Tuesday.

For more: http://www.suntimes.com/news/crime/25677596-418/bar-patrons-refused-drinks-charged-in-700000-trump-tower-flood-prosecutors.html

Leave a comment

Filed under Crime, Flood Insurance, Guest Issues, Hotel Bar, Management And Ownership, Risk Management, Structural Damage

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

Leave a comment

Filed under Claims, Flood Insurance, Maintenance, Risk Management

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/

Leave a comment

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

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

Leave a comment

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

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

Leave a comment

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

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

Leave a comment

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