HHI and Irene

[htmlkid]

Here's a question

Does Disney at a certian point decided to close the resort if Irene gets close and if there is extensive damamge how significantly do you think that will that affect future MF's

 

[DenLo]

Webmaster Doc knows a lot about what you are asking and is very familiar with HHI so hopefully he will give you a more detailed answer.

I have only completely read the Declarations for AKV and BLT as well as their POS's and the POS of Aulani. I've read portions of Declarations for several of the other resorts. But it's my understanding that all the DVC properties are pretty similar but just have some variances depending on state or county law differences.

First of all the DVCMC has insurance for each DVC resort. HHI's would include coverage for wind and water damage and I would hope a flood policy too. However, if the resort is severely damaged and it has to close for an extended period, the points for that resort are suspended and you will not be able to use them during the repair period, not even at another DVC resort. If the resort is so damaged and DVCMC decides not to rebuild the resort, then the proceeds from the insurance is distributed among the owners of the resort. It essentially buys out your ownership interest and your points are considered cashed in. And if that's is your only DVC resort then you are no longer a DVC member.

And then there is the scenario where the insurance doesn't cover all of the expenses. Disney might choose to make the repairs and then set up a loan to the DVC resort to pay off these expenses not covered by insurance. The loan then is prorated over the life of the loan and the additional amount per point is added to the annual dues. HHI has already had the need for a loan from Disney for another reason and I think the loan is still being paid off at 12 cents per point. This loan might be almost paid in full though.

That's one of the hazards of buying at a resort where the possibility damage from a hurricanes is high and because of the additional insurance costs, the annual dues at HHI and VB are higher than the WDW resorts. Of course if a fire burns down a resort or an earthquake causes extensive damage the same thing could happen for any of the resorts.

Now how much would be added onto the MFs would be just a guess. I suppose the loan could be as long as the remaining years on the contract to keep the MFs lower. MFs can be raised up to 15% without a vote by the membership/owners.

There are two ways to pay for large expenses that would increase the MFs more than 15 percent:

• A vote by the owners agreeing to a higher than a 15% increase in the MFs amount or
  
• By a special assessment which is also put to vote to the owners.

A special assessment would cause the DVC lots of bad publicity, and if the DVC is still selling other properties I don't think it would be suggested. The DVCMC would want the added expense to be as painless as possible to the owners.

 

[DVCconvert]

For the purposes of guests safely it could well be closed as a major storm approached. This has happened on at least one occassion I can remember at VB.

If damage were so bad such that insurance would not cover repairs - as DenLo said, cash would be apportioned out to owners.

 

[DenLo]

I would think if evacuation is ordered then it's out of Disney's control and people would have to evacuate and the resort would be closed.

Otherwise like DVCconvert said in the above post Disney would close the resort if the guests were in danger.

BTW, the latest models do not show South Carolina in the warning area for Hurricane Irene including high winds.

 

[CarolAnnC]

As a Vero Beach owner, I can tell you there have been no special assessments even after hurricane damage needed to be fixed. As stated above, evacuation is ordered by officials, not DVC. There are plenty of evacuation signs posted on the roads in Vero so one would have no problem finding their way to safe ground. I would assume the same for HH.

I don't think the resorts would close themselves, just follow evacuation mandates.

 

[csharpwv]

I'm not so sure I agree with the PP - Disney is a Family company, and as a family company they pride themselves on the attention to detail.... and one of the most important details is safety.

Having participated in a Disney training program, the trainer said that "Disney exercised 'undue' caution" In regard to the beach resorts, and Disney Cruise Line - they exercise caution above and beyond what authorities require.

Safety is a top priority for Disney, and an ounce of prevention is worth a pound of cure!

 

[OrangeCountyCommuter]

I would think if evacuation is ordered then it's out of Disney's control and people would have to evacuate and the resort would be closed.

Otherwise like DVCconvert said in the above post Disney would close the resort if the guests were in danger.

BTW, the latest models do not show South Carolina in the warning area for Hurricane Irene including high winds.

Having been on Hilton Head when the evacuation order was posted (Hugo) They do make the hotels, resorts etc. close as much as possible. DVC, Marriott etc are "closed" If you rented a villa on your own that's not in one of the big complexs you might get away with staying, but if you are at the DVC resort they will chase you out ... they were serioius about getting us out of there. (Driving around with loudspeakers at 4 AM saying LEAVE ... we were packing up to head out then )

Hilton Head has been very lucky, it's been a LONG time since it's been hit hard. (Luck runs out at some point...)

 

[dis-happy]

I'm not so sure I agree with the PP - Disney is a Family company, and as a family company they pride themselves on the attention to detail.... and one of the most important details is safety.

Having participated in a Disney training program, the trainer said that "Disney exercised 'undue' caution" In regard to the beach resorts, and Disney Cruise Line - they exercise caution above and beyond what authorities require.

Safety is a top priority for Disney, and an ounce of prevention is worth a pound of cure!

In my memory the last time DVC people were told to leave was when the Town of HH ordered a voluntary evacuation (non-residents were supposed to be required to leave). I think it was about 4 years ago (maybe longer???). The day of the "storm arrival" ended up to be a perfect, sunny, cloudless, warm day. For whatever geographical reason, HH usually gets missed by hurricanes.

Because there's such a lead time between potential hurricane and actual arrival, and a balancing act between the two, I'm pretty sure that Disney doesn't want to close down and send people home if they don't have too. Super annoying when the storm doesn't come, and yet not enough time to actually evacuate if they wait until the last minute. It makes more sense to me that they wait for the official word from the gov't.