Hyatt Insurance Question with Deeded Weeks VS PP

[NWTRVLRS]

Hi

Our personal home owners insurance company is looking at our overall exposure to liability when it comes to our Hyatt timeshare, as we own deeded weeks... they informed us:

Your property policy does not extend on-premises liability coverage or coverage for the furnishings in the time-share property. You should obtain an underlying property policy through a local carrier for Deeded Contract Timeshare property insurance. Often times this coverage is available through the time-share company.

Does anyone have information on what we are covered for with Hyatt insurance if we own deeded weeks vs being part of the PP program?

Thanks!

 

[breezez]

If you read through the ILG 2017 Annual report it explains how the Hyatt’s are insured.... Some may even have no insurance at all do to prohibitive costs

 

[NWTRVLRS]

Wow! Does anyone have a link to the report?

 

[breezez]

Insurance—Damage to, or other potential losses involving, properties that we own or manage may not be covered by insurance.

Market forces beyond our control may limit the scope of the insurance coverage we can obtain or our ability to obtain coverage at reasonable rates. Certain types of losses, generally of a catastrophic nature, such as earthquakes, hurricanes and floods, or terrorist acts, may be uninsurable or the price of coverage for such losses may be too expensive to justify obtaining insurance. As a result, the cost of our insurance or the related deductibles may increase and our coverage levels may decrease. In addition, in the event of a substantial loss, the insurance coverage we carry may not be sufficient to pay the full market value or replacement cost of our lost investment or that of owners of VOIs or in some cases may not provide a recovery for any part of a loss. As a result, we could lose some or all of the capital we have invested in a property, as well as the anticipated future revenue from the property. In addition, we could lose the management contract for the property and, to the extent such property operates under a licensed brand, the property may lose operating rights under the associated brand.

Link see page 41: https://last10k.com/sec-filings/ilg#link_fullReport

 

[Sugarcubesea]

Breezez: you are a wealth of knowledge. I just sent this email to my friend who’s buying a Hyatt.

 

[NWTRVLRS]

Thank you very much for sharing this!

 

[Sapper]

Insurance—Damage to, or other potential losses involving, properties that we own or manage may not be covered by insurance.

Market forces beyond our control may limit the scope of the insurance coverage we can obtain or our ability to obtain coverage at reasonable rates. Certain types of losses, generally of a catastrophic nature, such as earthquakes, hurricanes and floods, or terrorist acts, may be uninsurable or the price of coverage for such losses may be too expensive to justify obtaining insurance. As a result, the cost of our insurance or the related deductibles may increase and our coverage levels may decrease. In addition, in the event of a substantial loss, the insurance coverage we carry may not be sufficient to pay the full market value or replacement cost of our lost investment or that of owners of VOIs or in some cases may not provide a recovery for any part of a loss. As a result, we could lose some or all of the capital we have invested in a property, as well as the anticipated future revenue from the property. In addition, we could lose the management contract for the property and, to the extent such property operates under a licensed brand, the property may lose operating rights under the associated brand.

Link see page 41: https://last10k.com/sec-filings/ilg#link_fullReport

This makes me wonder what insurance each property carries. I seem to remember a line item from the Beach House for insurance, but now I'm wondering what that insurance really covers. I know that the property sustained minor damage during the 2017 hurricane, and there have been no special assessments.

 

[bogey21]

I had two of my Weeks (Chateau Le Grande in Biloxi, MS and Peregrine, San Luis Pass, TX) damaged so bad by hurricanes that it took about a year for both to be repaired and reopened. Both are HOA Controlled Independent Resorts. In both case they were rebuilt using money from Insurance Companies. Neither required a Special Assessment and both had reasonably low MFs. And Hyatt can't afford insurance. Go figure...

George

 

[Pathways]

And Hyatt can't afford insurance

Where did this come from?

 

[bogey21]

Where did this come from?

It came from previous posts quoting Hyatt to wit "Market forces beyond our control may limit the scope of the insurance coverage we can obtain or out ability to obtain coverage at reasonable rates"...

 

[Pathways]

Market forces beyond our control may limit the scope of the insurance coverage we can obtain or out ability to obtain coverage at reasonable rates

May - might - reasonable...... this is all legal boilerplate stuff. Nowhere does it say they 'can't afford insurance'. MANY major companies do not carry certain insurance products for these same reasons, they instead find it more cost effective to self-insure. Then some carry an umbrella policy, others have deep enough pockets to go without.

Insurance—Damage to, or other potential losses involving, properties that we own or manage may not be covered by insurance

Just as this disclaimer states, there may be outliers where certain events are not covered. They don't want to make a blanket statement that EVERYTHING is covered as it opens them up to unknown situations.

This entire filing amounts to nonsense for most of us. If we read the disclaimer for aspirin and took it to heart, we would never stick one of those pills in our mouth. If we read the prospectus for most stocks and tried to analyze it, we would put our money under our mattress.

Your property policy does not extend on-premises liability coverage or coverage for the furnishings in the time-share property.

This quote from the insurance salesman should be rather obvious - your personal home insurance does not cover liability or the furnishings of a timeshare property. If you got such a policy, what a mess it would be to have 1/52 of the furnishings insured.

you should obtain an underlying property policy through a local carrier for Deeded Contract Timeshare property insurance

Insurance salesman says you should buy more insurance

Often times this coverage is available through the time-share company.

Often times? Help me here, maybe I have missed it, but I have never seen or heard of coverage through the 'timeshare company' that covers ME.

(To those who haven't followed this entire thread - these are not quotes from NWTRVLRS, but from their agent)

 

[bogey21]

My comment that maybe Hyatt can't afford insurance was a little flippant. Sorry... But what OP seems to be asking is if their HO Policy covers their "exposure to liability" at the Hyatt Deeded Week they own. The answer is apparently "No". It seems to me like they were then asking if Hyatt had Liability coverage that covered them. Apparently the answer is also "No". So maybe a Liability Umbrella Policy will give them comfort. Maybe it will. Maybe it won't. I haven't a clue. I'm not in the Insurance business...

I understand why Hyatt's Annual Report says what it says. The way it reads they can't be accused of misleading anyone. And if by chance they don't have enough Property Damage Insurance, they can always have a Special Assessment. It happens all the time...

George

 

[Pathways]

My comment that maybe Hyatt can't afford insurance was a little flippant

I was sorta guessing that, which is why I was vague in my ?? response. But when you answered with just the quote, I figured I would expand a little for others who may just be reading one post at a time on their phone and miss the overall picture.

(Kind of like when an OP states in their first post they have owned a timeshare for two years, but twelve posts later two people are telling them to 'rescind", and then the next two tell the OP HOW to rescind)