Problems Faced By Hotel Owners While Filing Flood Damage Claims

Problems Faced By Hotel Owners While Filing Flood Damage Claims

Although, it may sound a little pessimistic to dwell on the fact, what could happen, it’s important to protect yourself from some of the life’s biggest surprises. You are always at a risk of extreme losses due to disasters irrespective of what you own is a small motel or a chain of high-end resorts. If disaster strikes, money should be the last thing you should be worried about. Properties in Texas are naturally more prone to flooding. Our expert lawyers explore the unique challenges hotel and motel owners face when filing flood insurance claims.

Most of the private insurers they do not provide coverage for Flood Damages. Businesses usually should buy coverage for weather-related flooding. One can buy it through the National Flood Insurance Program (NFIP), which provides up to $500,000 in property damage and an additional $500,000 for lost inventory to the commercial properties.

Hoteliers may suffer significant losses due to flooding whether caused by an adverse weather or burst pipes.

Partial closures:

Due to some health and safety reasons, flooding in one area of the hotel may cause the temporary closure of the entire property. This causes a loss at a time when the income is of the utmost importance for activities like making repairs.

Emergency repairs:

Flooding in one area of the hotel may cause the temporary closure of the entire property before draining and sanitizing their properties to prevent damage from getting worse. Owners must only make temporary repairs to make the area safe for the insurance adjuster’s inspection. Make sure you have been given a quote for your claim before you begin full repairs otherwise your expenditures may overtake your claim value.

Upgrade Cost:

You may have to rebuild the damaged structure in order to be compliant with updated building and health code requirements if in case your hotel is more than 10 years old.

Make sure to purchase law and ordinance coverage, if not then you will likely be forced to pay for these upgrades out of pocket.

Payroll Coverage:

Meanwhile, your hotels are closed for repairs your certain key employees (such as concierges, an accountant, or managers) might be tempted to seek for the employment elsewhere.

In order to prevent such situations and to retain your key employees, payroll coverage a valuable insurance add-on comes into the picture.  It allows you to regularly check on your workers you do not want to let go.

If you have suffered major losses due to flood damage then you can our expert lawyer Bill Voss who can examine your policies to determine how much you may be owed from each one to get you maximum payment from your coverage. Fill out the form on this page today to contact the Voss Law Firm PC, or order a free copy of our book

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