Anticipated special assesement for Vero due to hurricanes

[Vince]

Just received my notice for the 04 annual meeting and it states "that the 05 proposed budgets do not include an anticipated special assessment as a result of the extensive impact from recent hurricanes. Any special assessment will be contingent upon the insurance adjuster's appraisal and the amount of federal relief awarded to Indian River County."

Anybody wanna guess what kind of special assessment we are most likely to get hit with ??? (if any)



Thanks,
Vince

 

[kweaver]

Yikes!

 

[floridafam]

Well, there goes my good mood.

I'm not sure. Anyone want to guess?

Wouldn't most of the damage have been covered by insurance? Would the special assessment be for the increase in insurance premiums?

I'd love to hear some guesses from someone who knows more than I do.

I'm probably going to go to the annual meeting but I haven't received anything in the mail yet. Can you tell me when it is?

 

[Vince]

Floridafam,


The annual meeting is Friday, December 3rd @ 2:00 pm. Hopefully we won't get hit too badly with this special assessment. I think this will be DVC's first special assessment issued to members at any of the DVC resorts, can anyone confirm this?

I am glad to see and hear (thanks to the great folks on this board) that Vero is looking great once again but this assessment is a bummer ! :-(


Regards,
Vince

 

[Granny]

It will be very interesting to hear why the insurance doesn't cover the hurricane damage. After all, a big part of the explanation for the hefty maintenance fee increases the past few years has been the rapidly rising costs of insurance.

Maybe I'm naive, but this is kind of disappointing news to me, even though I don't own VB points.

 

[LisaR]

Originally posted by Granny
It will be very interesting to hear why the insurance doesn't cover the hurricane damage. After all, a big part of the explanation for the hefty maintenance fee increases the past few years has been the rapidly rising costs of insurance.

Maybe I'm naive, but this is kind of disappointing news to me, even though I don't own VB points.

I don't think insurance didn't cover the damage. I think the increase will be from the deductibles. VB had two separate deductibles from two separate hurricanes. Having just moved to FL right before this hurricane season hit, I had sticker shock when I saw how much our deductible was for hurricane damage. If our house has a deductible that is outrageous, I can't even begin to imagine what it is for VB.
Lisa

 

[DebbieB]

I work in commercial insurance and my bet is their wind deductible is 5% of the property value (which is the norm for coastal properties). If the property is valued at $10,000,000 (just a wild guess), the deductible would be $500,000. Twice (two occurrences). I'm not sure how much damage there was, but with the hefty deductible, little may have been covered. Even so, when you divide that out by the total points available, it shouldn't make a huge difference. Does anyone know how many points are available at Vero? By looking at the BWV budget, there are 4,889,000 points available there. Say Vero has 2,000,000 points available (again, a wild guess), a $1,000,000 assessment would be 50 cents per point.

 

[floridafam]

I thought the Florida legislature was working on a law that would call for only one deductible (retroactive to before the hurricanes?)

Would this apply to a business?

Also, if there was damage from the first storm that hadn't been fixed before the second storm-are we paying for it twice? Does that make sense?

 

[LisaR]

Originally posted by floridafam
I thought the Florida legislature was working on a law that would call for only one deductible (retroactive to before the hurricanes?)

Would this apply to a business?

They are working on a law but it isn't in effect yet and so it won't make a difference for this past season.


QUOTE]Originally posted by floridafam
[B
Also, if there was damage from the first storm that hadn't been fixed before the second storm-are we paying for it twice? Does that make sense?[/B][/QUOTE]


Using a residential home as an example and assuming it would be the same for a business, this is what we were told by our insurance company:

The first claim was made for a damaged roof. The adjuster came out and put in writing what the problems were. The next hurricane comes and causes more damage to the roof that hadn't even been repaired yet. That is now a new deductable. While the roof did have damage the first time around, the new damage is different then the old damage so it is a new claim. Clear as mud? lol

Lisa

 

[DebbieB]

Originally posted by floridafam
I thought the Florida legislature was working on a law that would call for only one deductible (retroactive to before the hurricanes?)

Would this apply to a business?

Also, if there was damage from the first storm that hadn't been fixed before the second storm-are we paying for it twice? Does that make sense?

I heard they were working on that also, not sure what is going on with that. I don't know how they could rewrite the policy form (which the state approved) after the fact. I'm sure the companies would fight that.

The reason for the high deductible is that after Andrew that was the only way to get companies to be willing to write property insurance in Florida. Otherwise, it was too risky.

The second occurrence would be new damage. How far apart were the storms? I'm sure the adjustors had already documented the major damage from the first storm before the second one hit.

 

[floridafam]

I guess we'll find out soon enough.

We had trouble finding homeowner's insurance for the house we just bought. Most of the companies down here aren't writing new policies.

 

[Dean]

Unfortunately, as I predicted. My guess is around $1-1.50 per point plus another sizable increase in dues.

 

[PamOKW]

The wording does take into account that they are waiting to hear on the insurance.

...anticipated special assessment as a result of the extensive impact from recent hurricanes. Any special assessment will be contingent upon the insurance adjuster's appraisal and the amount of federal relief awarded to Indian River County. Information regarding the special assessment will be communicated to all owners of Disney's Vero Beach Resort as soon as it is available.

Dues went up 4% or $.20 per point.

I'm hoping the assessment will not be painful.

 

[DebbieB]

One thing I was wondering - what affect does the fact that they were closed for about 6 weeks have on dues? No cash rentals but less opearating expenses.

 

[Dean]

Originally posted by PamOKW
The wording does take into account that they are waiting to hear on the insurance.



Dues went up 4% or $.20 per point.

I'm hoping the assessment will not be painful.

Actually I was talking about the next few years, not necessarily this year. They don't yet know the extent of costs so not possible to anticipate them very well until after the fact.

 

[nickglover]

I think we are going to sell our DVC membership, and just pay cash when we go to Vero Beach. Living in Tampa, we have been to Orlando enough, so the DVC club just isn't flexible enough for us and is quickly becoming too expensive for what you receive.

floridafam - if you go to the meeting and speak up, I hope you will mention this.

 

[lenshanem]

Good luck VB owners! Here's hoping it won't be too bad.

 

[CaptainMidnight]

Originally posted by Dean
Unfortunately, as I predicted. My guess is around $1-1.50 per point plus another sizable increase in dues.

Thanks for the prediction, that's not outrageous. I'd be OK with it.