Timeshare insurance in the form of insuring the property

[Guest Close Quarterbore]

If a resort is destroyed by a natural disaster, is the resort responsible to have insurance to cover the rebuilding or loss or do owners have a responsibility to have some type of insurance on the property?

I never really thought or looked at this before... the timeshares I own are not exactly in high risk areas but all timeshares could have a fire while others could be affected by flooding (New Orleans anybody), Huricanes, Earthquakes, etc...

How does this work when a resort is a complete loss?

Do owners get charged a huge fee to help with the rebuilding?

If there insurance policies that timeshare owners could purchase?

I am sure there are members here that have been through this... how does this work?

[Keitht Super Moderator Find all posts View Profile Close Keitht]

Insurance has to be the responsibility of the resort. Can you imagine the problems if it was owner responsibility? A small resort of 50 units each occupied 50 weeks of the year would require 2500 insurance policies if each individual had to insure their unit for a week. Nightmare!!

[Guest Close Quarterbore]

True enough... but for those that have gone through this how does it work...?

Is this something that should be asked of a resort before you buy?

I could swear I saw old posts on here that indicated that members had to pay special fees to rebuild or repair after some of the huricanes last year...

[Keitht Super Moderator Find all posts View Profile Close Keitht]

True enough... but for those that have gone through this how does it work...?

Is this something that should be asked of a resort before you buy?

I could swear I saw old posts on here that indicated that members had to pay special fees to rebuild or repair after some of the huricanes last year...

QB,

You are correct that there were posts regarding special fees. I can only assume the resort was under insured, or using the hurricanes etc as cover for previous bad management and a way to rake in extra cash.

[Fern Senior Member Find all posts View Profile Close Fern]

There's probably a hefty deductible as well.

Fern

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

The major problems seem to occur off-shore where mandatory insurance and or enforcement are more lax. A well managed resort will have a reserve to cover most of a potential deductible as well as other non-scheduleable problems. Well run resorts will usually not ever have a special assessment. Checking for special assessment history should be a part of due diligence before buying-finding one is a red flag to me, finding more than one could indicate a pattern of mismanagement.