Hurricane Earl Affects Several Destination Clubs

By: Destination Club News
Date: September 2, 2010

Hurricane Earl has already caused multiple states to declare a state of emergency and more than 30,000 residents and travelers on North Carolina's Hatteras Island have fled as the rest of the Eastern Seaboard monitors the storm. With Labor Day just days away, many with trips planned to the East Coast may be altering their plans as the hurricane makes its way closer to land.

Ultimate Escapes, the world's second largest and only publicly-traded destination club, counts two properties in the Outer Banks, an area that could be hit by the hurricane. Experts predict that the eye of the storm will remain 30 to 75 miles east of the Outer Banks, but the western edge of the eyewall could create huge waves, beach erosion, and possibly property damage.

Saint Martin is one of the more popular Caribbean destinations for members of Quintess, The Leading Residences of the World. Residents on the island stated that trees were toppled and caused power outages as a result of the tropical storm's driving winds earlier in the week.

While not directly in the path of Hurricane Earl, the Dominican Republic, a popular vacation option for many destination club members, prompted evacuations of coastal towns and canceled flights throughout the country. Throughout the Caribbean, Hurricane Earl has added up to roughly $150 million in damage.

Since Hurricane Katrina ravaged New Orleans and the surrounding community, hurricane insurance rates have been on the rise. Home owners often have to pay thousands of dollars per year with deductibles in the tens of thousands of dollar region. Unlike second home owners who bear these costs alone, destination club members don't have to worry about property taxes, insurance, or HOA fees. Club's use a portion of each members' annual dues to pay for these costs as well as the travel planning services provided to members and other costs associated with owning a collection of vacation properties.

If you would like to learn more about the benefits and risks of joining a destination club, request a free copy of our Destination Club Guide, your resource for backgrounds on every club and suggested due diligence points to consider. In the mean time, we will speak with the clubs with properties in the path of Hurricane Earl to see if there has been any damage to club residences or impact on club members. Check back soon for more information.