Category Archives: Flood Insurance

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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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

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by | September 9, 2011 · 10:39 am

Hospitality Industry Property Risks: Hurricane Irene Damage Forces Closure Of North Carolina Hotel Until 2012

 “…(a review of)…the situation with repair and restoration companies, insurance and safety inspectors, and a host of others, we have regretfully concluded that the safest option for our guests and associates is to temporarily close the hotel in order to thoroughly and efficiently complete the work,”

Damage from Hurricane Irene has forced the Sheraton Atlantic Beach to close for the remainder of the year. The hotel is now contacting all the groups and individuals who were booked through December 31.

An employee meeting is being held this afternoon. Ninety employees will be furloughed during the repair process, according to Barnes.

“We will be communicating with employees twice a week regarding our process and sincerely look forward to the opportunity to welcome everyone back after the first of the year, ” Barnes said. “Until then, we are working to place our employees in temporary positions and we welcome calls from employers who are looking for quality staff.”

For more:  http://www.witn.com/home/headlines/129527083.html

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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 | January 13, 2011 · 6:30 am

Hospitality Industry Risks: Hotel And Restaurant Owners And Management Must Have Emergency Plans And Insurance In Place To Manage Crisis

Hotel owners and management must be able to deal with catastrophic events and know the answers to the following:

  1. How quickly could you restart?
  2. Would insurance provide money for next week’s rent and wages?
  3. What would the bank say?

Massive floods are one thing, but what if a neighbouring building caught fire or your kitchen burst into flames? Start your managers and staff thinking through the issues, while they’re still in the headlines…

  • Check Data Backup Systems: are they all onsite or are copies of data, systems and staff records kept elsewhere? Is the safe fireproof or just a box with a key? Online backup systems like Carbonite work well, and data storage is very cheap – but you need to start it happening!
  • Is the Insurance cover complete? Would it cover a situation like the current floods? Does it cover intangible items as well as equipment? What about loss of profits and staff wages while rebuilding happens?
  • Are Staff trained for fire and first-aid emergencies? This is the type of training that’s usually regarded as ‘nice to have’ rather than essential. Do they know how to handle a fat or an electrical fire? What about an elderly customer who faints or collapses? Or flood waters coming near electrical connections?
  • How will you keep Customers & Staff informed? It’s more effective if your email newsletter or SMS alerts are already part of their world, then you can really keep their loyalty active. Your Facebook Page and Twitter updates will also reach many others…
  • Have a Crisis Management Plan, designed to cover the many risky situations where you depend on only one alternative: eg only one staff member who’s qualified with first aid, one chef who knows how to cook the favourite dessert, one key for the liquor store, or one computer with all the staff records.
  • Crisis Management Downloads: ready to use (and edit) Safety Manual and Rules, Maintenance Logbook, Cleaning Rosters (greasy dirt is a big cause of kitchen fires) and a raft of other systems designed to keep your business organised and safe.

For more:   http://www.hotelnewsresource.com/article51387.html

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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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