Timeshare Damaged During Hurricane

[BrianC515]

Hi Everyone, I recently became an owner of a timeshare unit/week in Florida that was damaged by the recent hurricane. My week is in July, and right now the timeshare management state they expect repairs to take up until december or later of next year.

My bill has come due, and I'm being asked to pay for a timeshare week I won't be able to utilize due to the repair needs. I'm investigating whether the insurance policy they're required to hold and levy premiums for via common expense covers lost revenue when a business is inoperable. I know this is a thing for some businesses, but I don't know if it is for timeshares.

I've also found through the contract that we have a reserve fund and want to know the figures in that. The contract states that anything paid out by Insurance past what's required for repair is kept in "operational surplus", a term I can't find defined therein.

My concern is that I'll pay this bill, my timeshare management will be reimbursed for damages and potentially then some, and I'll be paying the same amount next year, with no consideration of the insurance payout bearing on my yearly maintenance and dues.

Has anyone experienced something like this, and if so can you explain how some of this may work for us unit/week owners?

 

[dioxide45]

I would think if they had insurance to cover maintenance fees of owners, they wouldn't be asking you for them. I know some resort systems like Hilton have insurance for these kinds of things, but I wouldn't expect a small independent resort to carry it.

It is also likely that much of what you pay is going to cover the deductible, which can be very high for this type of storm damage.

 

[BrianC515]

Thank you. Would it be fair to expect maintenance costs for a given year to potentially be lower as all or many expenses related to standard property upkeep and utilization would cease with its closure? Do you know if that's ever something addressed and made public to unit owners?

 

[dioxide45]

Thank you. Would it be fair to expect maintenance costs for a given year to potentially be lower as all or many expenses related to standard property upkeep and utilization would cease with its closure? Do you know if that's ever something addressed and made public to unit owners?

You should be able to get information from your HOA BOD. Have you asked them these questions?

 

[BrianC515]

You should be able to get information from your HOA BOD. Have you asked them these questions?

Nope, I believe others have with less than satisfactory answers but I'm not typically the type to be present at meetings or mindful of communications they send out, at this point to my detriment. Definitely heading in that direction but I want to know what types of things I should be asking, what experiences others have had when faced with something similar, which is why I've come here, to the contract, and to Florida state law before following up

 

[theo]

<snip> … I'm not typically the type to be present at meetings or mindful of communications they send out, at this point to my detriment. Definitely heading in that direction but I want to know what types of things I should be asking, what experiences others have had when faced with something similar, which is why I've come here, to the contract, and to Florida state law before following up

As an owner of multiple timeshare weeks in SW Florida for many years (all of those weeks are at independent resorts, none are at “chain” properties), I will share some personal observations and experiences from the devastation of Hurricane Ian on September 28, 2022 (and more recently, damage sustained in 2024 from Hurricanes Helene and Milton). Two of our several properties are not yet sufficiently repaired to reopen, so some folks are now looking at a third consecutive year of inability to access a property at which they own intervals, while nonetheless remaining responsible for paying annual maintenance fees.

1. Maintenance fees are due from owners each year, whether the (independent) resort is open or not. Utilities, real estate taxes (and notably, insurance costs) do not magically cease to exist because the resort is closed and under repair. Moreover, insurance claims for sustained damage involve hefty deductibles that need to be covered. Btw, insurance costs have already doubled or tripled in many instances in FL; owners are responsible for covering those increased costs at independent timeshare properties.

2. If you intend to now belatedly ask questions of your HOA / BOD, you certainly should include inquiring about the prospect of ”special assessments”, which would be unexpected costs in addition to mandatory (and rising) maintenance fees.

3. In the post-Hurricanes Ian / Helene / Milton picture, I can envision no scenario in which you could possibly see any “reduced maintenance fees” or "excess insurance payment funds" at any independent Florida resort. On the contrary, the real and more appropriate question is how much more you will have to pay going forward.

I‘m sure that the above is not welcome input, but it is nonetheless factually accurate (so don’t shoot the messenger). For the record, I claim no knowledge whatsoever of how any of the various “chains” handle owner fees and costs during or after property closures resulting from severe storm damage. My above observations specifically and only address and relate to practices at independent timeshare properties in SW Florida.

 

[Passepartout]

One REALLY good reason I wouldn't own a TS in Florida. Each to their own.

 

[TheTimeTraveler]

Hi Everyone, I recently became an owner of a timeshare unit/week in Florida that was damaged by the recent hurricane. My week is in July, and right now the timeshare management state they expect repairs to take up until december or later of next year.

My bill has come due, and I'm being asked to pay for a timeshare week I won't be able to utilize due to the repair needs. I'm investigating whether the insurance policy they're required to hold and levy premiums for via common expense covers lost revenue when a business is inoperable. I know this is a thing for some businesses, but I don't know if it is for timeshares.

I've also found through the contract that we have a reserve fund and want to know the figures in that. The contract states that anything paid out by Insurance past what's required for repair is kept in "operational surplus", a term I can't find defined therein.

My concern is that I'll pay this bill, my timeshare management will be reimbursed for damages and potentially then some, and I'll be paying the same amount next year, with no consideration of the insurance payout bearing on my yearly maintenance and dues.

Has anyone experienced something like this, and if so can you explain how some of this may work for us unit/week owners?

One other thing you "may" have to worry about is the new Florida Building codes in regards to buildings which are three stories or taller. I have no idea if this pertains to your Timeshare but I want to throw it out there in case you do....

It "could" become very expensive when you add everything up.

@theo provided some very valuable input (as usual).

Best of luck.









.