# Hurricane damage insurance denial for resort repairs



## charlja (Mar 7, 2018)

Hi - Fishermen's Village Wharf in Punta Gorda sustained major damage in Hurricane Irma.  They are have been closed since October and we are told by resort management that the insurance company is denying the repair claims.  

Has this happened elsewhere at other resorts?

What happens if owners do not pay their maintenance, which is much increased to cover the costs of repairs?  This is a "vacation license/right to use" that expires in five years.  Any advice? 

Thanks in advance!


----------



## pedro47 (Mar 7, 2018)

Did the resort have an addendum in their insurance policy to cover a major hurricanes claims and can the resort file an appeal with the insurance company or with an governmental agency ? Good Luck.


----------



## Sea Six (Mar 7, 2018)

Better call Morgan & Morgan


----------



## moonstone (Mar 7, 2018)

Our DS works for a major restoration company and had lots of work in TX & FL after the hurricanes last fall. He had a few name brand timeshare & hotel repair contracts in which the properties which were woefully under-insured. He also found that damage from previous hurricanes had not been repaired, at all or correctly, which added to the problems. Many insurance companies did or are refusing to pay out claiming the damage wasn't covered for some obscure reason. Several big companies are being sued for that reason and a few have already settled so repairs are underway.

We own a condo in FL which sustained minor hurricane damage and when a repair company started to work on the building they too uncovered previous damage. Just like above, the insurance company our property management company uses is refusing to pay out saying the damage is normal wear. Lawyers are now involved there too!

So I don't think the problem that uncommon.


~Diane


----------



## Jan M. (Mar 7, 2018)

Insurance companies routinely deny claims and sometimes insureds will accept the denial not pursuing the claim any further. If nothing else delaying the payouts helps their bottom line numbers for their quarterly dividends and the insurance industry ratings. Many insureds hire an independent adjuster. This frequently helps in dealing with the insurance company and getting the claims paid.

My husband just retired last month from working as a risk control specialist in equipment breakdown for a major insurance company. His territory was all of Florida south of Sarasota over to Fort Pierce and clear down through the Keys. He inspected a lot of condos, businesses, timeshares, etc. In handling the claims from Irma he saw one place that hadn't properly repaired the AC system after Hurricane Wilma. They didn't want to spend the money which they would have been given back then and chose to substitute a cheap and entirely inadequate repair instead of replacing like for like as they should have done. In cases like this the insurance company is entirely justified in denying the Hurricane Irma claim. It is his experience that management companies frequently don't act in the best interests of the owners and boards of directors often make decisions they don't have the knowledge or background to be making. That being said management companies can be sued and boards of directors should have director and officer insurance which covers them should they be sued.

I can't even begin to tell you the number of times my husband has come home and said he would never consider living in some of condo's and hoa's in our area because of what he saw when he went in to do a full assessment of their equipment and electrical systems. When we stayed at Sea Gardens in Pompano Beach, a Wyndham resort, for two years running he told the resort manager and the head of maintenance that they needed to put in metal or concrete poles to protect their transformer. They had cement poles protecting the dumpster and he explained that even scrap metal poles sunk into the ground would help so this isn't an expensive very much needed preventive measure. He explained if his company were to insure them and he did the initial assessment that would be something they would be required to do for his company to insure them. If anyone would ever hit the transformer the whole resort could be without power for several days and that is only if there was no subsequent damage as a result of the power outage. Last time he looked a couple of years ago this still hadn't been done.

A forensic analysis/property analysis report of everything a business, timeshare, condo, hoa is responsible for including buildings, clubhouse, pool, sidewalks, any equipment, etc. should be done by the property insurer every time the policy comes up for renewal. If they didn't do it then the insured can request that it be done. In my husband's experience getting the boards to agree to spend the money to do whatever is recommended is frequently a problem and getting the cooperation of the management companies often even a bigger problem. Some of the equipment he inspected required State operating certificates which he refused to issue until certain repairs or replacements were done. Never assume you have a good property management company or board of directors.


----------



## Passepartout (Mar 7, 2018)

Looks like the OP has a decision to make. If his 'ownership' is simply a RTU and it expires in 5 years anyway, I think I know what my decision would be. I'm walking. . . .


----------



## charlja (Mar 7, 2018)

I truly hope it is as easy as saying  that we are not going to pay and we want to terminate our vacation license.  No credit bureau reporting?

Prior to the hurricane I inquired as to what the plan is when 2023 arrives and the agreements expire for current “owners”.   No answers from them.   So that says a lot.  They lack planning and are nit acting responsibly to get their ducks in a row.   

Also interesting that they purchased a vacant college building recently to develop condos.   And across the bridge a huge condo development by Allegient Air will be built.   Maybe they actually want everyone to walk away now?  Not sure.  

I am going to walk away if at all possible without consequence on my credit report.


----------



## Passepartout (Mar 7, 2018)

If there is no deed, there can be no foreclosure, and if you default on a damaged property, I can't imagine there is anything other than withholding your use that they can do. I don't think I'd sweat a credit bureau ding, especially since you have the opportunity to answer any derogatory report. Kiss 'em goodbye.

Jim


----------



## silentg (Mar 10, 2018)

I sent you a pm


----------



## Kathy Ryan (Mar 15, 2018)

It is good to know others feel the same way, there is something "fishy" going on with Fishermen's Village. I don't plan on paying the almost $2000. and  not be able to use it again. We lost last year's week also since we own in November. We also own one in Sarasota and lost the 2017 week and just found out they are going to close for 12 weeks this year to complete repairs from the hurricane, which happens to be during the week we own! I inherited these from my parents and I am sure they had no idea what a burden they would become.


----------



## silentg (Mar 15, 2018)

What resort in Sarasota?


----------



## Leslie Fletcher (Apr 21, 2018)

The insurance coverage varies according to your policy plan. Many insurance plans do not have the complete coverage for the water damages. It is better to have a flood insurance that gives the complete repair and replacement coverage. My friend has a resort in Florida, due to the hurricanes there was a huge damage, the flood insurance Palm Beach County helped him to overcome the loss. It is better to invest time to know about the flood prone area and get adequate insurance coverage accordingly.


----------



## Sugarcubesea (Apr 21, 2018)

Jan M. said:


> Insurance companies routinely deny claims and sometimes insureds will accept the denial not pursuing the claim any further. If nothing else delaying the payouts helps their bottom line numbers for their quarterly dividends and the insurance industry ratings. Many insureds hire an independent adjuster. This frequently helps in dealing with the insurance company and getting the claims paid.
> 
> My husband just retired last month from working as a risk control specialist in equipment breakdown for a major insurance company. His territory was all of Florida south of Sarasota over to Fort Pierce and clear down through the Keys. He inspected a lot of condos, businesses, timeshares, etc. In handling the claims from Irma he saw one place that hadn't properly repaired the AC system after Hurricane Wilma. They didn't want to spend the money which they would have been given back then and chose to substitute a cheap and entirely inadequate repair instead of replacing like for like as they should have done. In cases like this the insurance company is entirely justified in denying the Hurricane Irma claim. It is his experience that management companies frequently don't act in the best interests of the owners and boards of directors often make decisions they don't have the knowledge or background to be making. That being said management companies can be sued and boards of directors should have director and officer insurance which covers them should they be sued.
> 
> ...




Good friends of mine just bought a condo in a development called "BAY POINTE YACHT & RACQUET CLUB" in North Ft. Myers and they were very concerned as they were nervous to purchase because they wanted to ensure that they did not pick a condo or HOA that was not fully funded.  The hubby researched for a year and then this year the HOA monthly fee's jacked up high...I feel bad for them


----------



## Teresa (May 13, 2018)

We used to own in a full-ownership vacation rental in Daytona.   MOST of the big properties are insured by the state-fun insurance company and they have a reputation for denying claims (because they can?).

Our 'resort' had to sue them when those four hurricanes went thru 'several' (10??) years ago.   So did other resorts up and down the coast.  It took YEARS to finally get to court and we were the first case among all the cases backed up.   We won but it was a bunch of paperwork, inspectors, experts, etc.   The whole building twisted in one of the storms (we had to figure out which storm) and cracked tile and cement in one corner of the entire building (inside).   In order to get back in operation all the owners had to pay a special assessment and when the insurance proceeds came in we'd get some money back (turned out it wasn't much - nor as much as we put in as the deductibles on hurricane damage are huge in most cases).

Your management shouldn't lay down but should hire a company that fights insurance companies on denied claims.   I don't know who we had but I'm guessing a google search will pick up something.  Just know that you will probably have to come up with assessments to get working now.



charlja said:


> Hi - Fishermen's Village Wharf in Punta Gorda sustained major damage in Hurricane Irma.  They are have been closed since October and we are told by resort management that the insurance company is denying the repair claims.
> 
> Has this happened elsewhere at other resorts?
> 
> ...


----------



## joshua2016 (Oct 26, 2018)

Passepartout said:


> Looks like the OP has a decision to make. If his 'ownership' is simply a RTU and it expires in 5 years anyway, I think I know what my decision would be. I'm walking. . . .


I walked w/ 2 weeks owned, BUT they were used to exchange Wyndham points, still not resolved by my Wyndham ownership


----------

