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If you own a hotel, you already know severe weather has a way of exposing every weak spot—operational and otherwise. New Orleans-based insurance concierge Joe Hollier, better known as “Mr. Hotel,” has spent years helping owners avoid the surprises that tend to surface at the worst possible moment. We asked him what smart hoteliers should be asking their brokers and carriers now, before the next storm starts making headlines.
—Interview by Jennifer Glatt, edited by Bianca Prieto
What are the most common insurance blind spots hotel owners overlook heading into hurricane season, which officially started June 1?
The biggest blind spot is assuming the policy covers everything. I often see owners underestimate business interruption, overlook flood exclusions and carry outdated property values that no longer reflect rebuilding costs. After a storm is where I see the real damage. In many instances, it is the loss of cash flow and extended downtime, not just the physical damage to the building.
For older or historic properties, how should owners evaluate whether coverage truly reflects today’s risks?
Older and historic hotels are some of the most vulnerable properties when it comes to underinsurance. Rebuilding costs, code upgrades, restoration costs and timelines have changed drastically. Owners and operators need to ask themselves one big question: “If I had to rebuild this property tomorrow, would my current coverage realistically get me there?” In many cases, the answer is no.
What should owners understand about business interruption coverage before storm season begins?
Most hotel owners focus on property damage, but the bigger financial hit is usually the quiet time afterward. Lost bookings, payroll, ongoing expenses and delayed reopening can put enormous pressure on a hotel. Business interruption coverage is what helps keep the operation alive while the property recovers.
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What key questions should owners be asking their brokers or carriers right now?
Owners should start by asking, “Where are my coverage gaps?” They need clarity on flood coverage, hurricane deductibles, rebuilding valuations, business interruption timelines and code upgrade exposure. The worst time to discover a coverage gap is during a claim. There is a lot of risk transfer built into policies that can put significant financial responsibility on the owner after a major loss.
What proactive steps can hotels take?
The hotels that weather storms best are usually the ones that prepare long before a storm forms. Simple things like addressing maintenance issues, reviewing emergency plans, documenting property updates and reassessing coverage limits go a long way. Insurance companies are rewarding hotels that actively manage risk instead of waiting to react after a disaster hits.
(Image courtesy of Joe Hollier)
Mint Pillow’s Take
Resilience is part of modern hospitality strategy. Hotels that regularly reassess insurance coverage, understand where they’re financially exposed, document renovations and upgrades and plan for operational downtime are far better positioned to protect both cash flow and long-term asset value when unexpected events hit. Savvy operators treat preparedness the same way they treat guest experience or revenue management: as an ongoing discipline, not a once-a-year checklist.
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