Mainebiz

W W W. M A I N E B I Z . B I Z 21 D E C E M B E R 2 , 2 0 2 4 F O C U S B A N K I N G / F I N A N C E / I N S U R A N C E and equipment, says Laura Johnson, who owns the restaurant with her hus- band Erik Johnson and their business partner Mike Brennan. e partners pay $26,000 per year for a $1 million flood insurance policy with a $5,000 deductible. at's on top of standard commercial insurance, which is almost as much. "We figured, we paid so much per year for it, they would cover it," says Johnson. But a year later, reimbursement remains a struggle. "We had the mold remediation people come and take everything out and dry the place out. We had heaters put in because all of our pipes were exposed to the elements. at bill was astronomical," says Johnson. "Our flood insurance wouldn't even cover that bill." e kitchen was flooded by several feet of water, requiring $250,000 in repairs and new equipment. e insurance policy paid a small amount, says Johnson, but nothing close to the true cost. "ey didn't even come close to it," Johnson says. "ey didn't come up with what our premium is per year." e partners were approved for a $300,000 U.S. Small Business Administration low-interest loan, but that hasn't come yet either. So Johnson took out two short-term per- sonal bank loans to cover repairs while the partners continue to seek insur- ance reimbursement. e restaurant is back up and run- ning, with precautions such as a raised floor and repositioned equipment. "We love what we do," she says. "If we didn't, we would have given up." Winter's coming At Greenhead Lobster, Reynolds made immediate repairs on his own so he could resume operations. "We got everything going," he says. "But when the electrical systems get contaminated with salt water, when does the damage end?" He applied for a $500,000 50/50 matching grant from Maine's Business Recovery and Resilience Fund, which rolled out in May to help businesses and organizations affected by specified severe weather-related events. Reynolds' goal is to rebuild infrastructure able to withstand continued severe weather. But first he must come up with the match, probably from conventional bank financing. Anticipating more storms, Reynolds installed immediate precautions such as electrical upgrades. When the next storm comes, he and his team will move as much stuff as they can. And yet. "e system is flawed," Reynolds says. "Because I don't know if any- thing can protect us." Says Carey, "It's such a massive problem that it deserves a massive response in terms of all the various and sundry ways that we'll be affected by climate change. We've been super lucky since March. Hurricane season didn't affect us that much. But win- ter's coming." Laurie Schreiber, Mainebiz senior writer, can be reached at lschreiber @ mainebiz.biz Local. National. Global. Wherever you need us. At Dentons, we are here to help you grow, protect, operate and finance your organization. dentons.com © 2024 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Please see dentons.com for Legal Notices. Grow | Protect | Operate | Finance Zack Brandwein Of Counsel Kevan Lee Deckelmann Partner Ian Green Senior Managing Associate Chad Higgins Partner Katherine Drabecki Shareholder Kyle D. Smith Associate Joseph Long Associate Hannah King Partner Andrew Helman Office Managing Partner Malina Dumas Senior Managing Associate The bottom line is that most properties in Maine are not covered for flooding or water damage. — Bob Carey Maine Bureau of Insurance P H O T O / C O U R T E S Y M A I N E B U R E A U O F I N S U R A N C E Bob Carey, superintendent of the Maine Bureau of Insurance, says only about 1.3% of all Maine properties are enrolled in the National Flood Insurance Program.

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