Hurricanes and Maintenance Fees

[momofthreeplusone]

Can anyone with experience tell me what happens if a hurricane hits the resort you own weeks at? The realator I have been talking with said damage is covered by the resorts insurance, however I am wondering what happens, typically, with maintenance fees? Also, if the resort cannot be used due to damage, what happens with my weeks?

 

[SteelerGal]

If there’s damage, there can be a special assessment. If property is unavailable, depending upon on the Systen, you may receive a replacement week at another resort. Each company may handle it differently.

 

[tony_i]

Marriot legends edge owners can give you info on the question of increased MFs. I read a big increase for 2019.

HICV has Bay Point in PCB, and it was hit hard by Hurricane Michael in October of 2018. Property is still closed for repairs. I went there in July 2019 and there was a lot of work to be done. It looked like they were working on a section of the property first, to maybe start booking there? Other areas were bad and noone working. I am not sure of MFs increase for 2019 or 2020, however, HICV was contacting deeded owners to exchange their deeds for other HICV properties. We still do not have an answer if or when it will open. Also, when I drove by, there was no hicv branding anywhere.

Marriot and HICV are large corporate companies. A smaller timeshare like tropical breeze in PCB went under when the developer left after a hurricane. They had some years closed until they were able to delevop with the help of Escapes. Owners had to continue to pay some maintenance without use of the property.


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[Tamaradarann]

Can anyone with experience tell me what happens if a hurricane hits the resort you own weeks at? The realator I have been talking with said damage is covered by the resorts insurance, however I am wondering what happens, typically, with maintenance fees? Also, if the resort cannot be used due to damage, what happens with my weeks?

Since this is the Hawaii Forum tsunamis or flooding due to rising sea levels might be more of a concern than hurricanes. While there was no damage to the resort we were staying at, we have had to evacuate twice due to Tsunamis Warnings while we have been in Hawaii. The resort's insurance certainly will cover most of the damage, a special assessment might be necessary to cover some of the damage or measures to prevent future damage over the long haul. While we have had some storm damage and other events that have made the resorts that we own unoccupyable we never had the resorts we own damaged for an extended period of time so we can't answer that portion that portion of your question.

 

[flindberg]

As far as I know any maintenance costs at any T/S resort ends up increasing owner m/f's. The resorts insurance may cover some of the initial 'hit' of storm damage, but as an owner you WILL feel the impact. FL

 

[SteelerGal]

I know Hyatt in PR is still closed. 1st year, MF was cut in half. 2 years later, there was a significant increase. And it’s still not open.

 

[momofthreeplusone]

Since this is the Hawaii Forum tsunamis or flooding due to rising sea levels might be more of a concern than hurricanes. While there was no damage to the resort we were staying at, we have had to evacuate twice due to Tsunamis Warnings while we have been in Hawaii. The resort's insurance certainly will cover most of the damage, a special assessment might be necessary to cover some of the damage or measures to prevent future damage over the long haul. While we have had some storm damage and other events that have made the resorts that we own unoccupyable we never had the resorts we own damaged for an extended period of time so we can't answer that portion that portion of your question.

I was thinking of when Hurricanne Iniki hit Kauai years ago and when Lane came very close last year. But you’re right, other places do seem to get hit worse than Hawai’i, and I think potential damage from a tsunami or flooding as you mention is definitely something to think about.
May I ask, when the resorts you own at were unoccuable from storm damage, was there any way to recoup your MF’s?

 

[TheTimeTraveler]

Can anyone with experience tell me what happens if a hurricane hits the resort you own weeks at? The realator I have been talking with said damage is covered by the resorts insurance, however I am wondering what happens, typically, with maintenance fees? Also, if the resort cannot be used due to damage, what happens with my weeks?

I don't believe there is one blanket answer for this as a lot of variations can exist, and some of this may depend upon the operator(s) of the affected Resorts.

Insurance may or may not fully cover a hurricane and a lot depends upon the deduction. Whatever isn't paid for by a policy usually falls upon the shoulders of the owners (also known as special assessments or higher annual maintenance fees). If the reserve funds are very healthy then it stands to reason that there will be a large draw down of the reserves.

Your own travel insurance may or may not pay for your annual maintenance fees if your resort is closed (and you can not occupy it) during your week.




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[Dean]

Can anyone with experience tell me what happens if a hurricane hits the resort you own weeks at? The realator I have been talking with said damage is covered by the resorts insurance, however I am wondering what happens, typically, with maintenance fees? Also, if the resort cannot be used due to damage, what happens with my weeks?

In general what I've seen is that insurance covers some and the owners cover some. But if your resort has significant damage expect a special assessment or increased maintenance fees (or both). And if the resort (or your part) is destroyed, you may cease to own it at all though you may (or may not) get a portion of any insurance proceeds. Remember there are other "costs" over just physical damage as well.

 

[bogey21]

In years past I had two Resorts severely damaged by hurricanes, one in Biloxi, MS and one in Galveston, TX. Both were Independent HOA controlled resorts. In both cases they were shut down for almost a year while repairs were made. I lost usage during this time and had to continue paying my MFs. But the good news is that in both cases there were no Special Assessments....

 

[geist1223]

When Worldmark Coral Baja was very heavily damaged in a hurricane several years ago and shut down for a year they had great insurance.

 

[TheHolleys87]

Several years ago a hurricane hit Disney's Hilton Head Island DVC resort and caused considerable damage. Insurance covered it, but the deductible was something like $750,000. But instead of hitting the owners there with a large special assessment, Disney loaned that condo association the money for the deductible, and the owners paid it back over 3 or maybe 5 years via a small addition to their MFs.