Food & Drink

Denied Coverage for $30,000 of Flooded Equipment, Wheated Still Moves Forward


In the wake of Hurricane Sandy, Wheated’s David Sheridan (pictured above at a local soup kitchen) learned that flooding may have ruined $30,000 in equipment sitting in a Coney Island storage unit. Just a few days ago, David received verbal denial of insurance coverage from an inspector who visited the space.

“The effects of being submerged in saltwater is now apparent when looking at the ovens,” David told us. “I have to accept that they are a total loss as the manufacturer had indicated. We are moving forward while looking at ways to raise funds to overcome the setback of loosing the ovens. Because we are not yet open, the emergency loan program setup by NYC for helping businesses recover is not available to us. I am hoping FEMA/SBA will be able to provide us with a loan based on the loss.”

Several commenters on this blog raised the possibility of community fundraising, something that David and his wife Kim McAdam are considering.

Despite the “total loss” of $30,000 of equipment and the denial of insurance coverage, Kim and David continue to move forward.

“I would say January completion is still our goal with an opening shortly afterwards,” wrote David. “The amount that has been completed is significant. I now see a restaurant shaping up when I walk into the space. A good feeling for sure.”

Photo: Facebook

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  1. That’s really awful news but it’s so heartening to hear that they’re forging on! And yes, Wheated, please consider something like Indiegogo to get some funds…we’re all in this together 🙂

  2. If something like a Kickstarter campaign was started, i would definitely contribute/donate. Kickstarter has helped many businesses in this position

  3. Flood insurance is something that nearly no company offers. If the location is considered in Zone A, FEMA flood insurance can be purchased through your insurance company and they simply act as an agent for FEMA. You must read the FEMA guidelines as no content is covered if located in a basement facility, just structure and key support elements such as boiler, heater, etc.

    Consumers have to read their policies and ask questions. Its your right to know your coverage and responsibility to know what your buying.

  4. I would be happy to contribute to a Kickstarter campaign to help you guys out. Our neighborhood needs your business to open!

  5. Most companies only offer flood protection against water/sewer based flooding. FEMA requires that flood insurance is purchased for all Zone A properties. Others zones can be purchased, but are not required by FEMA. There are a handful of companies that do offer flood insurance, but its quite expensive for any Zone A locations as each other address is evaluated on a case by case basis.

    Make sure to read the FEMA guidelines for their program. It has some serious gaps. Any contents in a basement that is not part of the support systems for a home is not covered. You boiler, water heater, and washer/dryer is about the only content items they cover in a basement flood. They will cover the damage to the physical basement up to a point. Garages have their own stipulations. If you have stuff in the basement, your expected to bring it up before a storm.

  6. Several years ago Jan Rosenberg and John Broderick organized a group of contribtutor/investors to bring in a good restaurant on Cortelyou (this was before the first Picket Fence). The deal fell through but the it was a wake up call about how much this area is willing to do for local restaurants. Let us know how to help.

  7. If there is any way for us to help, please let us know! I am very excited about having what sounds like really great pizza in the hood. Good luck with everything and I am happy you are still moving forward! Adelante!

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