Hurricane Tips for Hotel Owners

By Alex N. Sill Company & Boyken International -- HOTELS Magazine, 7/1/2005

Before the Season

• Create a disaster plan and test it. There are many publications

  on this subject and some consulting firms have disaster-recovery

  planning as a service offering.

• Form a disaster team with each member having specific duties

  in the event of a loss.

• Take photographs of the property in its existing condition.

  Video images will better document the existing areas. Open

  cabinets and storage rooms when videoing the property to

  reflect what is stored in those areas.

• Establish a pre-storm checklist to help better protect

  the property. Checklist should include items such as sealing

  all openings (windows, doors, carports or drive-through areas

  etc.), equipment to be shutdown or relocated to a higher

  ground or location, preparation and placement of sandbags,

  securing dewatering equipment and temporary generators, etc.

• Obtain copies of existing building plans and specifications

  and store off-site in a secure location.

• Contact a public insurance adjuster to represent the hotel

  incase of a loss, secure a preferential rate with that adjuster.

  As with any professional, not all public adjusters are the

  same. It is imperative that your adjuster is a member of

  a state or national organization (NAPIA), is properly licensed

  (about 38 states require it), has extensive experience with

  hurricane damage claims in the hospitality industry and has

  an in-house staff of experts including adjusters, building

  appraisers, contents experts and CPAs.

• Check policy for deductibles and exclusions – have

  selected adjuster review policy to make suggestions on how

  to fill the insurance gaps if they exist.

• Check business-interruption coverage and property limits

  to make sure coverage is adequate.

• Have the public adjuster create some “what if” scenarios

  and project how your coverage would perform. Review what

  is best for your operation; blanket vs. specific, contingent

  losses, etc.

• Establish a banking relationship that includes construction

  financing in the event of a storm.

• Establish a relationship with a good local architectural

  firm and engineering firm.

• Establish a list of selected contractors and negotiate

  a preferential agreement. Agreement would include a fixed

  fee percentage over the actual costs or costs per month for

  services.

After the Storm

• Life safety should always be your first consideration.
• Contact your insurance agent about the loss, first by phone

  and then follow-up in writing.

• Contact your selected public adjuster to review damages

  and help secure partial payments from the insurance company.

• Contact your selected contractor to protect the building

  from further damage.

• Take photographs of the damaged area – preferably

  digital.

• Test all interior areas for moisture readings and document

  the readings.

• Block entry by unauthorized individuals to prevent liability.
• Set up accounts to track loss-related expenditures including

  labor.

• Keep a detailed log of activities and maintain accurate

  records.

• Formulate a post-loss business plan which should include

  public relations to protect your market.

• Contact your design firms (if needed) to help with any

  structural or engineering solution to your damages. Work

  with the architectural firm to detail the repair solutions

  or the necessary property modifications.

• Work with the insurance company to manage the cash flow

  to make the repairs.

• Review insurance policy for the next

  storm.