BeachPlace Towers - 9.4% increase for 2018 [Merged]

[dioxide45]

It doesn't sound like the HOA was reserving anything to cover the insurance deductible. This isn't surprising, the HOA has always been one to try to scrimp on everything and the owners are now paying for it.

 

[JIMinNC]

It doesn't sound like the HOA was reserving anything to cover the insurance deductible. This isn't surprising, the HOA has always been one to try to scrimp on everything and the owners are now paying for it.

That takes us back to the point that Susan has made in several threads on this topic and some other threads commenting on the Disaster Recovery fees - should an HOA reserve to cover a deductible for an unpredictable event like a hurricane? Replacement of roofs, furnishings, carpet, paint, etc. can be predicted, but storms cannot. Yes, storms hit some areas on average every X-number of years, but averages don't tell the entire story. Until 2016, a storm had not seriously impacted Hilton Head Island in many decades, but then we had Matthew in 2016 and, even though Irma didn't have a direct hit on HHI, there was still damage the very next year in 2017. I can see both sides of the argument. Why reserve when it may be many decades between hurricane impacts? But on the other hand, eventually, we know coastal areas in the southeastern US will have to deal with hurricanes, so why not hedge you bets at least to a degree? When was the last major storm to have significant damage in Ft Lauderdale? Hurricane Andrew was in 1992 and Wilma was in 2005 (but Wilma came from the west, hitting on the west coast near Naples, so Ft Lauderdale would not have likely had huge impacts). What do you use as the average period between storms to use to calculate the reserves? Do you count tropical storms? In some cases, a direct hit from a topical storm can cause more damage than a somewhat more distant hit from a major hurricane. There are so many variables, I'm not sure how you would objectively calculate the amount to reserve.

 

[SueDonJ]

That takes us back to the point that Susan has made in several threads on this topic and some other threads commenting on the Disaster Recovery fees - should an HOA reserve to cover a deductible for an unpredictable event like a hurricane? Replacement of roofs, furnishings, carpet, paint, etc. can be predicted, but storms cannot. Yes, storms hit some areas on average every X-number of years, but averages don't tell the entire story. Until 2016, a storm had not seriously impacted Hilton Head Island in many decades, but then we had Matthew in 2016 and, even though Irma didn't have a direct hit on HHI, there was still damage the very next year in 2017. I can see both sides of the argument. Why reserve when it may be many decades between hurricane impacts? But on the other hand, eventually, we know coastal areas in the southeastern US will have to deal with hurricanes, so why not hedge you bets at least to a degree? When was the last major storm to have significant damage in Ft Lauderdale? Hurricane Andrew was in 1992 and Wilma was in 2005 (but Wilma came from the west, hitting on the west coast near Naples, so Ft Lauderdale would not have likely had huge impacts). What do you use as the average period between storms to use to calculate the reserves? Do you count tropical storms? In some cases, a direct hit from a topical storm can cause more damage than a somewhat more distant hit from a major hurricane. There are so many variables, I'm not sure how you would objectively calculate the amount to reserve.

They'd also have to account for the fact that the catastrophic "Named Storm" insurance deductible is a variable that fluctuates with the total value of the property which presumably, if maintained to the Marriott brand standard and minus area-wide devaluation, will increase every year.

I assume that the dollar amount deductible of standard property insurance is kept in reserves at all Marriott resorts, at least I hope it is considering that amount is known in advance and that coverage applies to many more events than just named wind storms. But this catastrophic wind coverage is another animal altogether with way too many variables involved to properly fund it in advance of an event that may happen six times in one year and then not again for twenty.

Last year I was hit with "Disaster Recovery" fees for all three of my Weeks so I do understand the sting - it hurts! But I think I still prefer that this insurance deductible is not kept in Reserves because there's no way to predict the exact timing of when those monies will be used. I have to say, too, that I'm reassured MVW is not playing fast and loose with these assessments/collections by two things: one, they didn't try to charge their 10% Management Fee on top despite including it as a line item in the Operating Fee, and two, at both of my resorts the 2018 Operating Budgets reflect that the 2017 assessment was indeed a one-time fee.

And lastly, there is no doubt that Marriott could be communicating better with owners in the aftermath of these types of events - immediately and ongoing - even if it's a one-line email blast that simply says they don't know enough yet to say anything of substance but owners' concerns are important to them. If there's a next time I'll know not to sit patiently waiting but will instead be contacting them and asking, nicely, for better consideration and communication.

 

[Hi I'm new here]

Timeshare values have an inverse relationship to rapidly rising maintenance fees.
With or without extra disaster assessments Beach Place Towers is a timeshare I would unload ASAP if I owned there.
With or without the bad reviews.
Not to mention Wallet Hub surveyed 182 US metro areas and Ft Lauderdale was just named the least safe metro area in the US. Metrics included personal and community safety, risk of natural disaster (ding ding ding) and financial risk.
We were turned off by Ft Lauderdale years and years ago.

 

[tmhcars]

As I said in my very first post, one man’s trash is another man’s treasure.
We have been coming to Ft. Lauderdale for decades and love it, having never encountered any problems. My advice for anyone who may be interested in MBP if you see a cheap unit for sale go for it.

 

[vacationhopeful]

I like Ft Lauderdale .... beach area is just part of this city. The airport is great and local enough to have to regular city bus service into the various sections of the city & Broward County. Food can be Top Chef to the 24 hour pizza joint. Shopping can be designer shops to the flea market. There is horse racing to dog racing to boat racing plus a few casinos. Fishing can be done from any piers or the beach, party drift boats or custom trips out beyond the reefs (just depends on money you can spend or your interest).

As for NOT SAFE .... I have traveled to many places in the world & USA. I have not been troubled with riding the BCT (Broward County Transit) public bus, sitting at bus stops waiting, walking down the sidewalks, shopping in the malls, etc .. but then again, used to work in Philadelphia, traveled alone via trains throughout Europe, visited NYC for multiple stays, and took the Greyhound Bus at 17 years old alone from the airport to my Florida college (my first airline flight that I remember) 1000 miles from home.

Now, I am observant of the who, what & where when travelling any wheres. Sometimes it is best to cross the street, grab a cab, ask a shop keeper or desk clerk, join a group tour for some trips and travel, dress conservently, talk less and talk quietly.

 

[SueDonJ]

... I assume that the dollar amount deductible of standard property insurance is kept in reserves at all Marriott resorts, at least I hope it is considering that amount is known in advance and that coverage applies to many more events than just named wind storms. ...

Talking to/questioning myself again but -

Do we know if they actually collect and keep the standard property insurance deductible amount in Reserves? Isn't it possible that the Insurance line-item in the Operating Fees only covers the annual premiums for whatever types of insurance are mandated/carried? And that if a claim for unforeseen damage/repairs of any type needs to be made then the owners will be assessed the deductible amount?

 

[JIMinNC]

Talking to/questioning myself again but -

Do we know if they actually collect and keep the standard property insurance deductible amount in Reserves? Isn't it possible that the Insurance line-item in the Operating Fees only covers the annual premiums for whatever types of insurance are mandated/carried? And that if a claim for unforeseen damage/repairs of any type needs to be made then the owners will be assessed the deductible amount?

I guess it depends on what the standard deductible amounts are on a property like a timeshare. The amount per ownership interval might be insignificant. For example, a 200-unit property with 52 weeks per unit would have over 10,000 owners, so a $10,000 deductible would be only $1 per week. A $100,000 deductible would be only $10 per week.

I’m obviously assuming a property like a timeshare has a much larger standard deductible than the $500 or $1000 amounts common for residential insurance.

 

[Superchief]

The deductible at Ocean Pointe was almost $4 million. Since the actual damage was slightly less than that, the insurance didn't pay for any of the damage. I'm sure premiums will also go up even though there was no expense to the insurance company.

 

[JIMinNC]

The deductible at Ocean Pointe was almost $4 million. Since the actual damage was slightly less than that, the insurance didn't pay for any of the damage. I'm sure premiums will also go up even though there was no expense to the insurance company.

That's the "named storm" deductible which is much, much higher than the standard damage deductible for other events. The standard deductible for non-named storms (like a hail storm or a thunderstorm) is much lower. That is what Susan's question referred to - do they reserve to cover this standard deductible?