When Louis Hernandez got the call at 3:00am that there was a fire at his laundromat, he rushed right over. When he arrived, he saw what was left of his business that he spent the last 4 years building.
“Well at least I have insurance”, said Louis
What Louis didn’t know and was unfortunately about to find out was that the insurance he had, supposedly there to protect him for just these types of situations, was not nearly enough. You see, when he bought his laundromat, he got insurance only for the replacement cost of the washers and dryers. The insurance did indeed replace the washer & dryers but what was missing is the saddest part of the story.
That afternoon, the landlord came by. He reminded Louis that his lease stipulated that the tenant is responsible for getting insurance for the property. As well, any other liabilities would be borne completely by the tenant, in other words, by Louis.
Within a few weeks, the negative repercussions of the fire became apparent to Louis. Eight customers demanded money—more than $15,000—to replace clothes lost in the fire. One woman claimed she lost a $1,200 blouse in the blaze. Another customer was asking for $2,500 to replace a whole football team's jerseys. Reading over his insurance policy, for the first time, Louis learned that lost customer property was not covered by his insurance.
As the weeks and months dragged on, Louis learned another big lesson. Even though he received the check to replace the washers and dryers, he had to keep making payments on the loans. He also had to keep paying rent, taxes, and other fixed costs. Very quickly, Louis saw his profits and personal income fall like a stone. He also realized it would be many months before his destroyed laundromat would be back in business, and many months after that before his customers would return in force.
Louis did everything right, but still lost his business. Don’t let this happen to you. Contact the folks at the Laundromat Success Program™ today to make sure your laundromat is safe. It will help you sleep better tonight.