Who pays for Vero Beach repairs?

[sonney]

I was thinking about this: Since, in theory, the Vero Beach resort is at least partly "owned" by the DVC members, will the DVC members have to pay for at least some of the fix-up, perhaps through increased yearly maintenance costs or a one-time assessment? This is pretty common in other timeshare organizations. Or perhaps its a moot point because insurance covers the damage. In which case....never mind!!

Sonney

 

[johare]

Insurance will likely cover the damage, but not the income lost due to the entire resort being empty for an entire month. Not sure if that's a loss that could or would be passed on to DVC members though.

 

[OneMoreTry]

It would seem that, technically, the people that are deeded those units during the down time would lose their points. Unless DVC has insured them or they have insured themselves -- in which case the point loss would be compensated monetarily.

I would be surprised if that's actually how DVC does it, though.

The only way to get around it would be for DVC to "give" those owners other points from other resorts or weeks. Again as I've posted elsewhere, it seems that would lead to a crunch for space at the resorts. Unless DVC has lots of unpurchased points to give away. (That would be DVC's loss and not the owners'.)

I predict that rooms will be a little harder to get for the next year. And borrowing could be temporarily suspended for a while.

 

[KLR-wlv]

Well Insurance would pay for it - but like any insurance - once there's a claim - the rates go up accordingly so I'm expecting to have a decent dues increase for next year....it's almost getting to the point where Disney might make out better being it's own insurer - like some large companies who self-manage their employee benefits. But as for VB - it's kind of like the insurer will pay now - we'll pay for the next few years....

 

[DebbieB]

I work in insurance. My bet is they have coverage but there would be a substantial wind deductible. When divided out among all the points, it probably would not be that much per point. I don't know if it would cause the rates to rise, they probably have a policy that covers all the resorts and the rating already considered the wind exposure. I don't think they would self insure when they have millions in property values sitting in hurricane vulnerable areas, it would be too risky.

 

[KennySC]

John Kerry just called in and stated that if he were President the Federal Goverment would pay for all repairs, lost income and candy for all the kids!

 

[kweaver]

ROFL!

 

[jmminarik]

Originally posted by KennySC
John Kerry just called in and stated that if he were President the Federal Goverment would pay for all repairs, lost income and candy for all the kids!

Hmmmm. An entitlement I'm finally eligible to collect.

-JOe

 

[kathleena]

Keep in mind there is likely a huge deductible - could be in the millions of dollars. Members would have to make that up in some way.

Someone else said in a previous thread that Disney self-insures.

 

[DukeStreetKing]

Originally posted by KennySC
John Kerry just called in and stated that if he were President the Federal Goverment would pay for all repairs, lost income and candy for all the kids!

Don't get too excited, I'm sure he will call back in a few hours and change his mind.

 

[gjw007]

Someone else said in a previous thread that Disney self-insures.

They might but I don't know if they do. When Frances was heading in the area, I had came across some information where many people who owned on the barrier islands (I believe Vero Beach is on a barrier island) had opted not to get insurance because the cost was so high. One quote for a $20 million home had them paying $2 million per year in insurance with a $800,000 deductable. There are people on this board who work in the insurance industry that can verify or refute this rate as it may be possible that the information is wrong. But if it is so high, a new home could have been built within 10 years on the savings from not paying insurance. Given the probability of a hurricane hitting and causing them major destruction, many people have self-insured and have built their homes as best as they could to avoid major damage should a hurricane hit.

I would suspect that Disney has some insurance because as a business, it faces other legal issues if it fails to take proper prudent actions but it may self-insure some parts of its operations. It all boils down to its risk analysis.

 

[Gdoody]

Knowing that central Florida was in a danger zone for hurricanes, I asked these same questions back in 1995 when we became members.

The explanation I was given, and I don't recall all of the details, was that Disney has so many buildings, shops and properties worldwide, that if any one property were to suffer serious damage, it could easily be re-built with the cash on hand of the overall company. That being said, Disney does have insurance on their properties as a whole, however the deductible is so high that it would never be used unless more than one building were involved, and the damages overall were significant - for example - serious damage to numerous buildings in WDW. This way the cost of the insurance is kept to a minimum. This however only affects Disney owned property, the DVC resorts are not technically Disney property, but rather, belong to the members. As per the management agreement, Disney has an obligation to maintain insurance on the DVC properties. Disney does this by adding the properties to its own suite of insured buildings, and takes on the responsibility for all necessary repairs below the deductible limit. However, we the members pay a fee for this insurance through our membership dues (apparently this is included in the language describing what our fees are used for), and this fee is based on the going rate that is normally charged by the insurance industry.

Sounds confusing - it was to me too. That beings said - I was just happy there was insurance. I also understand their point of view - if a Disney store in Timbuktu burns down, and that is the only tragedy in the year, then the insurance premiums paid for all properties combined would cover the re-build cost of this one store.

I was also told that liability insurance was completely separate, and covered through an independent third company.

Also - keep in mind that this was back in 1995. I don't know what has changed since then, and thankfully - until now it was never a question.

Regards!

 

[johare]

Originally posted by KennySC
John Kerry just called in and stated that if he were President the Federal Goverment would pay for all repairs, lost income and candy for all the kids!

George Bush just called in (after waiting the usual 15 minutes) and asked if Vero Beach was part of the United States.

 

[jmminarik]

Originally posted by johare
George Bush just called in (after waiting the usual 15 minutes) and asked if Vero Beach was part of the United States.

It's a valid question. It is a colony of Disney World.

-Joe

 

[Deesknee]

 

[TiggerFreak]

Originally posted by jmminarik
It's a valid question. It is a colony of Disney World.

-Joe

Isn't ALL Disney property a sovereign state like the Vatican
Really, some of us do treat Disney like a religon!

 

[Desperado]

Originally posted by KennySC
John Kerry just called in and stated that if he were President the Federal Goverment would pay for all repairs, lost income and candy for all the kids!

Not so fast, he called again and changed his mind.... no wait..... it's changed to something else ....



It probably makes the most sense for any repairs needed for Vero to be equally shared among all DVC members and an increase in maintenace fees equally distributed between all resorts.

 

[Zurg]

After learning you can't stay long enough to establish residence and register to vote there both W and Waffle moved on, leaving organization not affiliated with the campaigns sweep the area with metal detectors looking for loose change to chip into the 'non' campaign slush funds.

Swift boats have been seen on the Jungle Cruise Rivers but they seem rudderless. The captains are arguing over what side of water is the back. Rodger Moore shot the scene from the air but the hippos got his plane and old Rodger now low man on the totem pole if you get my point.

Trader Sam is unwilling to trade for the Candidates stating that one of his heads is better than these two.

 

[LewB]

Can't we take a break from the partisan politics? There are many better venues available.

I checked out the thread because I was interested in the subject matter, not in the personal politics, habits, ...ad nauseam of anybody who has the right to post.

Go find a new Debate Board. This isn't it.

 

[gritzel4]

Go find a new Debate Board. This isn't it

Lew B - I would like to second that