Hurricanes and "Disaster Recovery" Maintenance Fees

[vol_90]

Based on the MF tread the Marriott Legends Edge operating fee portion of the MF went from $1,024.16 (2018) to $1,410.99 (2019) for ~38% increase. I believe this size of an increase would have to be related to operating costs due to resort closure for Hurricane Michael. Any idea what one time fees normally cover when resort operations are impacted by natural disasters. I would assume all resorts have insurance to cover some of the losses. Just curious....

 

[Luvtoride]

Based on the MF tread the Marriott Legends Edge operating fee portion of the MF went from $1,024.16 (2018) to $1,410.99 (2019) for ~38% increase. I believe this size of an increase would have to be related to operating costs due to resort closure for Hurricane Michael. Any idea what one time fees normally cover when resort operations are impacted by natural disasters. I would assume all resorts have insurance to cover some of the losses. Just curious....

Vol, it’s to cover the resorts deductible that covers damage costs from dollar one up to when insurance kicks in. Also, it could cover some increased insurance premium costs for next year due to any potential claims expense that the insurer incurs.



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[hammondmn]

Vol, it’s to cover the resorts deductible that covers damage costs from dollar one up to when insurance kicks in. Also, it could cover some increased insurance premium costs for next year due to any potential claims expense that the insurer incurs.



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Is this a one time fee, I own a week at Legends Edge. Will the Disaster Relief charge be off the Maintenance bill next year?

 

[Luvtoride]

Is this a one time fee, I own a week at Legends Edge. Will the Disaster Relief charge be off the Maintenance bill next year?

Yes, it will Hammondmn. That's what happened with Ocean Pointe from last year to this year's MF. Last year we were assessed for damages related to hurricane Irma so this year's MFs are actually lower.

 

[SueDonJ]

Is this a one time fee, I own a week at Legends Edge. Will the Disaster Relief charge be off the Maintenance bill next year?

It should be. Look at the Operating Budget page of your MF package and you should see a note at the bottom that explains the Disaster Recovery Fee.

During these past few years Florida and South Carolina have been particularly hard hit by hurricanes, and so these one-event assessments to cover wind and flooding damage that's not covered by the basic insurance. With these events the resorts' special catastrophic insurance kicks in each time; it has a deductible based on a percentage of the total property value, an amount too high to keep in reserve when you consider that there's no way for them to predict if/when an event might occur.

 

[hammondmn]

It should be. Look at the Operating Budget page of your MF package and you should see a note at the bottom that explains the Disaster Recovery Fee.

During these past few years Florida and South Carolina have been particularly hard hit by hurricanes, and so these one-event assessments to cover wind and flooding damage that's not covered by the basic insurance. With these events the resorts' special catastrophic insurance kicks in each time; it has a deductible based on a percentage of the total property value, an amount too high to keep in reserve when you consider that there's no way for them to predict if/when an event might occur.

Thanks...........

 

[hammondmn]

Yes, it will Hammondmn. That's what happened with Ocean Pointe from last year to this year's MF. Last year we were assessed for damages related to hurricane Irma so this year's MFs are actually lower.

Appreciate it...........

 

[DrQ]

We have a TS in Galveston and when IKE hit, the management company disclosed the deductible was 2%-3% of the damage.