Floods Hit Hotels in BSD City
In early November 2025, heavy rain lashed BSD City, South Tangerang, for over 24 hours. Several hotels experienced ground-floor flooding, causing damage to facilities, disrupting services, and rendering some rooms uninhabitable.
One of the hotels affected isHotel BSD Prima(pseudonym), 3 stars, which has 120 rooms and several public facilities such as a restaurant, swimming pool, and meeting room.
Initial losses are estimated at Rp. 4 billion, including:
- Damage to hotel facilities: Rp1.5 billion
- Damage to equipment and inventory: Rp1 billion
- Loss of revenue due to rooms and restaurants not operating: Rp1.5 billion
Hotel management panicked because flooding not only damaged the property, but also reduced guest satisfaction and the hotel’s reputation.
Entrepreneurs Frustrated: Insurance Claims Not Immediately Disbursed
The hotel previously had Property All Risks (PAR) and Business Interruption (BI) policies. However, when the claim was filed, several issues arose:
- Verify the chronology of events: Insurance companies require rainfall reports, flood photos, and proof of damage to facilities.
- Documentation of losses: Equipment, inventory, and facilities must be assessed for damage.
- Lost revenue: BI claims require room occupancy data, restaurant turnover, and revenue from meeting rooms.
Operational manager,This is Nina, expressing his frustration:
“We pay regular premiums, but claims aren’t automatically disbursed. The process requires a lot of paperwork and time-consuming reporting, while hotel services must be restored quickly.”
This frustration is common, as many entrepreneurs think PAR + BI covers all flood risks, when in fact some risks require additional endorsements or complete documentation.
Fact: It’s Not Always the Insurance Company’s Fault
- Late claims or partial rejections are not due to bad intentions of the insurance company, but rather related to:
- Policy type and coverage: Flood may be a standard exclusion and require a special endorsement.
- Completeness of documentation: Photos, technical reports, and proof of lost income are required.
- Mitigation procedures: Hotels that do not have a drainage system or emergency embankment must demonstrate mitigation efforts.
- In other words, business frustration usually arises from ignorance of claims procedures and proper policy coverage.
Operational and Economic Impact
Flooding and damage to hotel facilities have had a real impact:
- Facility damage: Lobby, restaurant, swimming pool and meeting rooms were flooded.
- Equipment and inventory damage: air conditioning, electronics,furniture, and guest equipment was damaged.
- Lost revenue: Rooms unrentable, restaurants temporarily closed, meetings canceled.
- Additional costs: Cleaning, drying, facility repairs, and additional labor.
Total losses, including mitigation costs and lost revenue, could reach more than Rp4.5 billion within days if not addressed promptly.
Illustration of a Similar Case in BSD City
According to data from the South Tangerang Tourism Office, flooding often affects hotels in BSD City because:
- The drainage system is not optimal
- High rainfall and long duration
- Low-lying areas prone to flooding
Hotels without professional brokers typically experience:
- Pending or incomplete claims
- Most of the repair costs are borne by the owner himself.
- Slower service recovery
Meanwhile, hotels with L&G Insurance Broker get:
- Police guidance on flood risk
- Claims are processed quickly
- Compensation for damage to facilities and lost income
- Risk mitigation suggestions to prevent future losses
One of L&G’s clients successfully settled a claim of Rp3.8 billion in 3 weeks, enough to repair facilities, replace inventory, and restore the hotel’s services to optimal condition.
The Role of Insurance Brokers: L&G Becomes the Savior
Hotel BSD PrimaImmediately contact L&G Insurance Broker, headquartered in Bintaro, South Tangerang, just 30 minutes away. The L&G team will:
- Flood Risk and Hotel Infrastructure Audit
Review the drainage system, ground floor, essential facilities, and emergency response procedures. - Right Policy Recommendation
L&G recommends a policy package:
- PAR + BI + Flood Risk Endorsement
- SOP for flood risk mitigation and emergency embankments
- Fast Claim Assistance
The team prepared documentation of the flood chronology, technical reports, photos of damage, and reports of lost income. - Future Risk Mitigation
- Installation of automatic water pumps and temporary embankments
- Placement of sensitive equipment on higher floors
- SOP for flood emergency response and staff training
As a result, claims totaling Rp3.8 billion were disbursed within 3 weeks, enough to repair facilities, replace inventory, and ensure the hotel’s operations returned to normal.
Human Values: Ethics and Caring
Besides the financial aspect, this incident emphasizes the human value:
- Humility: Management recognizes the importance of protecting the hotel.
- Patience: Claims require coordination with various parties.
- Kindness: Staff are provided with support and job security.
- Temperance: Focus on restoring facilities and services.
- Charity (Concern): Items that are still usable can be donated to social activities.
This value is in line with the philosophy of L&G Insurance Broker, that insurance protects assets, staff and the surrounding community.
Comparison: With and Without Broker
| Aspect | Without Broker | With L&G Insurance Broker |
|---|---|---|
| Police Type | PAR + BIstandard | PAR + BI + Flood Risk Endorsement |
| Loss Value | Rp. 4.5 billion, most of which was covered by himself | Rp3.8 billion claims approved in 3 weeks |
| Claim Time | 6–8 weeks | 3 weeks |
| Claims Assistance | There isn’t any | Onsite claims team and full coordination |
| Operational Impact | Operations halted for a long time, guests disappointed | Operations recovered quickly, hotel services returned to normal |
Conclusion: Targeted Protection Saves Hotels and Services
The flood incident in BSD City emphasized:
- Standard PAR + BI is not always enough — flood risk endorsement and mitigation SOPs are important.
- Professional brokers like L&G can assess risks, tailor policies, handle claims, and provide risk mitigation advice.
- Fast and accurate claims processing maintains service continuity, cash flow, and the hotel’s reputation.
With its headquarters in Bintaro, South Tangerang, L&G is able to be directly present on site to ensure claims and mitigation run quickly and smoothly.
“The floods disrupted our hotel operations, but L&G helped with the swift claims process and facility repairs. Professional brokers are not just intermediaries, but lifelines for hotel businesses and operations.”
— Ms. Nina, Operations Manager of Hotel BSD Prima (pseudonym)
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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Disclaimer
The names, characters, and events in this article are fictionalized for educational purposes. This article was created to help the public understand the importance of having and managing insurance properly. Any similarities to real events are purely coincidental and not intended to offend anyone.
