The timing of remediation of the problem could not have been worse, with the region experiencing lockdowns due to the COVID-19 pandemic. The client faced delays and long lead times to replace the cabins. At the time, there was a major demand for Jayco cabins and caravans, with lead times of 15-18 weeks.
There was also pressure to have the properties replaced quickly, as travel restrictions overseas were showing no signs of lifting, and the owners were hopeful people would be able to travel to the park in the near future.
Seven out of eight cabins were damaged, and the client was quick to obtain replacement quotes. The client made the decision to order replacement cabins whilst the settlement negotiations were undertaken. The works that were required on the boundary fence and tennis courts were completed using local trades.
OUR ROLE
Our claims team and insurance broker worked with the insurer, TIG. TIG separately obtained the services of a valuation company to provide indemnity values which assisted TIG with their negotiations. The costs associated with the valuer and the insurer were covered within the insurance policy.
The next step was to accurately quantify the Business Interruption component of the claim, which consisted of determining potential income had it not been for the storm damage. A claims preparer was engaged to assist as the standard BI calculations wouldn’t suffice given the recent COVID environment and significant lockdowns impacting the previous 12-18 months. We worked hard to determine and negotiate the value of the BI claim before a settlement was confirmed.
OUTCOME
The client replaced the damaged cabins with new cabins in a timely fashion, ensuring the client was back in operation for the peak summer period. The Claims Preparer and Valuation Specialist’s costs were recoverable under the policy. The total claim incurred was $715k plus loss assessors fees.
KEY TAKEAWAYS
Good design of insurance ensured the client was restored to normal operations in a timely fashion.
Engaging the right experts in the management of the claim was key to the client achieving all they were entitled to under the policy.
Caravan Park Experiences Terrible Flooding
Our client is the owner of a holiday park located in Southwestern Victoria. They offer a variety of accommodation options, including family cabins, budget cabins and a combination of powered and unpowered sites. Heavy rainfall hit the region, and the caravan park was flooded, resulting in significant damage to their property, including damage to 8 cabins, the boundary fence and the tennis courts.
Investigation into the causes of the park's flooding found that the park would not have been flooded if not for the inadequacy of council drains; the drains' inability to cope with the rainfall resulted in most of the park being inundated with stormwater.