Mainebiz

V O L . X X X N O. X X V I I D E C E M B E R 2 , 2 0 2 4 16 B A N K I N G / F I N A N C E / I N S U R A N C E L ast winter's storms caused sig- nificant damage to Greenhead Lobster's two facilities in Stonington. "Structurally, it was in the hun- dreds of thousands of dollars," says Hugh Reynolds, Greenhead Lobster's owner. Losses included an entire marina and electrical systems. Forklifts and trucks were underwater. e cost of replacing the vehicles was covered by Reynolds' standard insurance policies. But neither flood insurance nor standard commercial insurance cov- ered the cost of repairing or replacing fixed structures built over the water, such as a bait shed and part of a dock supported by pilings. Reynolds pays $6,000 to $8,000 per year for flood insurance, which is required by federal lending regula- tions in designated flood-prone areas. Reynolds wasn't particularly surprised to discover its limitations. "You would have thought it cov- ered you in an event like this," he said. "I didn't really know." Worsening storms Paying for climate-resilient infrastruc- ture repairs and rebuilds along coastal and inland waterways are a critical topic at the local and state levels in the face of worsening storms. Devastating storms in December 2023 and January 2024 caused over $90 million in damage to public infrastruc- ture across the state, and millions more to private property, such as homes and working waterfronts, leaving many Mainers to deal with flooding issues. e state committed $60 mil- lion in storm relief for working waterfronts, infrastructure projects and business recovery, through the Working Waterfront Resilience Grant Program, Maine Infrastructure Adaptation Fund and Business Recovery and Resilience Fund. Waterfront businesses confront CLIMATE CHANGE As storms worsen, property owners are having mixed success with their insurance options B y L a u r i e S c h r e i b e r You would have thought it covered you in an event like this. I didn't really know. — Hugh Reynolds Greenhead Lobster F O C U S F I L E P H O T O / DAV I D C L O U G H Hugh Reynolds, of Greenhead Lobster in Stonington, says neither flood nor standard commercial insurance covered the cost of repairing or replacing fixed structures built over the water. He's seen here in 2019.

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