Hurricane damage and MF's?

[cruise-o-matic]

If the DVC resorts were to get significant Hurricane damage, what likelihood is it that it would cause the maintenance fees to increase the max over the next few years?

 

[Chuck S]

I would say that it is possible, but unlikely. The resorts are insured for a good chunk of change, so dues could be increased or a special assessment could be done for the deductible or costs that the insurance doesn't cover.

 

[Deep-Thots]

I'd think that insurance would cover most of the immediate damages caused by Charley and Frances.

Whether this would result in subsequent increases in insurance payments and thus, in consequent increases in MFs, remains to be seen.

 

[PamOKW]

DVC also keeps a capital reserve budget. This could be used to offset any major year-to-year increase.

 

[rocketriter]

DVC has a vested interest in keeping MFs manageable. If they were to zoom up, it would become much harder to sell SSR and at the same time resales would also zoom up. The result would be very undesirable for DVC.

 

[JimC]

This is part of the risk when you own real estate in Florida. A condo in the keys that my MIL owns had hurricane damage. Insurance covered some, capital reserves covered some and the association borrowed the rest using federal subsidized loans that were available (resulting in a special assessment to cover the new debt service).

Don't know if Disney would handle it the same way or if they would cover more of the risk themselves. Since we are a RTU owner they may be willing to take more of the risk; or not.

Does anyone know how Disney structures its risk management (how much they insure, how much they undertake themselves)? That may affect how we are covered and accordingly how risk would be apportiioned.

 

[BillPA]

As I recall DVC has a $50,000.00 deductable on property damage. If needed they may require the owners of record of any damaged building pay their share of the $50K. So that .1% ownership might cost you a one time fee of $50.00 I would not worry about any big bills due to storm damage.

 

[stacy6552]

If you compair the dues of all the resorts, you will find that VB are the highest. When we were purchasing, our guide explained that it was higher than the other because of the hurricane insurance.

So its a good news bad news good news kinda thing....

Good news if you don't own at VB, no personal cost incurred.

Bad news if you own at VB, if there's a member cost to be had, its your's.

Good news if you own at VB, your dues are paying off and you are fully insured.

 

[JimC]

Don't foget that those special risk policies (hurricane and flood) carry very significant deductibles, so there is still risk to the owners.