Sinkhole victims: Summer Bay reneging on promise to pay for losses [Orlando Sentinel] - Insurance News | InsuranceNewsNet

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August 28, 2013 Newswires
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Sinkhole victims: Summer Bay reneging on promise to pay for losses [Orlando Sentinel]

Stephen Hudak, Orlando Sentinel
By Stephen Hudak, Orlando Sentinel
McClatchy-Tribune Information Services

Aug. 28--Vacationers who narrowly escaped the sinkhole-collapse of their vacation villas at Summer Bay Resort say the time-share company is reneging on promises to reimburse them for losses of thousands of dollars in personal property.

Maggie Ghamry, a graphic artist from Virginia, said she lost more than $10,000 in electronics, including a laptop, iPad and camera, as well as expensive clothes from Victoria's Secret. Ghamry fled the time-share condominium with a friend and three toddlers before the three-story building split in half.

"They told us they'd make us whole. This isn't making us whole," she said. "It's definitely blind-sided us."

She received a letter, dated Aug. 26 and signed by Summer Bay CEO Paul Caldwell, indicating that the company will not pay for personal losses, though it had promised to do so.

"In our efforts to assist affected owners and guests, we are informed under Florida law a public lodging establishment is not responsible for the loss of personal belongings," the letter read. "We have, however, learned that such losses might be recoverable under an owner or guest's personal homeowner's insurance policy."

Ghamry said her homeowner policy does not have sinkhole coverage.

No one was injured when the circular sinkhole opened late Aug. 11 at the Disney-area resort in the Four Corners area of Lake County. About three dozen people were evacuated from the villas, some wearing only their pajamas. Speaking to reporters after the collapse, Caldwell said the resort would make its guests "whole."

"No one will suffer any economic loss," he said at the time. "There are some inconveniences to their vacations, which sickens us, but, believe us, we're doing everything to make this a special vacation."

Caldwell did not immediately respond to a request for comment today.

Another guest at Summer Bay, Krystal French, said she received a check for $3,000 from Summer Bay, but that it did not cover all of her losses, which she estimated at more than $4,500.

"They also offered me a week free [at the resort]," she said. "I don't want to go back there."

French, her 10-month-old son, Liam, and her fiance had escaped the collapsing building through a window.

This is a developing story. Check back for details.

[email protected] or 407-650-6361

___

(c)2013 The Orlando Sentinel (Orlando, Fla.)

Visit The Orlando Sentinel (Orlando, Fla.) at www.OrlandoSentinel.com

Distributed by MCT Information Services

Wordcount:  391

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