We have shared with 4 Hilton properties a $100,000 deductible so each property had a $25,000 deductible. This year the Board was notified that not only the insurance premium was being increased but also the deductible. Let me start off with the premium. Our premium increased by $780,000 and the insurance company required that the total premium must be paid in its entirety up front.

This reduced our reserves by $1,714,616. Now to add insult to injury our deductible was increased from $25,000 to now $3.300.000 (before buy down policy that will come into play and hopefully reduce the $3,300,000 – see below for more detailed information) The new deductible is not split – each property has their own for each occurrence. Yes, now over a 3 million increase in the deductible before insurance starts to pay. Now the Board looked into buying a policy on the deductible (buy down policy). It’s a very confusing policy but depending on the category, (must be cat 3 or greater) where it hits, the damage it causes to the other Hilton properties along with other variables determines the payout. No one will know until after a hurricane how much the insurance will help reduce the $3,300,000 deductible. With all the new developments the Board addressed the renovations scheduled for the living room, dining room, master and guest bedrooms. The model unit (101) has been completed and there were discussions on whether to move ahead with the renovations or hold off. There were different opinions with some members feeling the owners expected the units to be done and the money was in the reserves to others feeling it was their fiscal responsibility to the owners to hold back and have additional reserves. Thanks to the Board who could give our government some lessons ? they compromised leaving no one completely happy but knowing they were doing what they believe to be in the best interest of the Charter Club..