HQ on South Broadway Struggles to Reopen After Insurance Denies Flood Claim

An independent live entertainment venue, HQ on South Broadway, has been struggling to reopen after a pipe broke outside its building in August, causing 10-12 feet of water to flood the basement. The venue has been closed ever since. The owners of HQ have been trying to raise funds for repairs after their insurance company denied their claim for flood damage. The cost of remodeling the space and replacing all of the equipment and inventory falls on HQ, which estimates $100,000 in lost equipment and property plus a few hundred thousand dollars in lost revenue while the business remains closed.

HQ on South Broadway raising money after insurance denies flood claim

HQ on South Broadway is an independent live entertainment venue that has been closed since August due to a pipe break outside its building that caused 10-12 feet of water to flood the basement. The venue has been struggling to reopen ever since. The owners of HQ have been trying to raise funds for repairs after their insurance company denied their claim for flood damage. Water from outside of the structure is a common exception in all insurance policies in Colorado, not just commercial properties but homeowner policies as well. The cost of remodeling the space and replacing all of the equipment and inventory falls on HQ, which estimates $100,000 in lost equipment and property plus a few hundred thousand dollars in lost revenue while the business remains closed.

HQ on South Broadway Struggles to Reopen After Insurance Denies Flood Claim
HQ on South Broadway Struggles to Reopen After Insurance Denies Flood Claim

HQ’s Struggle to Reopen

Over the past several weeks, the basement has been cleaned and gutted. Now, Happel and his team are waiting for a structural wall to be torn out and rebuilt before they can allow patrons inside the building. The construction costs fall on the property owner. However, the cost to remodel the space and replace all of the equipment and inventory falls on HQ. “We received a complete denial from insurance. Water from outside of your structure is a common exception in all insurance policies in Colorado, not just commercial properties but homeowner policies as well,” Happel said.

HQ’s Economic Impact

According to Happel, the economic impact of the closure extends beyond just their venue. “A live entertainment venue brings a lot of economic impact to the neighborhood outside of what it just does for the venue. It’s hundreds of people in the block spending money, and they’re not here now,” he said. “We’ve had the bars and stores and restaurants near us be like, yeah, our business is way down since you closed.”

HQ’s Fundraising Efforts

HQ’s owners have started a GoFundMe campaign to help raise additional funds. They are also searching for arts and venues grants at the city, state and federal level that may help them expedite their reopening.

The owners of HQ on South Broadway have been struggling to reopen their independent live entertainment venue since August when a pipe broke outside its building causing 10-12 feet of water to flood its basement. Their insurance company denied their claim for flood damage as water from outside of structures is a common exception in all insurance policies in Colorado, not just commercial properties but homeowner policies as well. The cost of remodeling the space and replacing all of the equipment and inventory falls on HQ which estimates $100,000 in lost equipment and property plus a few hundred thousand dollars in lost revenue while the business remains closed. They have started a GoFundMe campaign to help raise additional funds and are searching for arts and venues grants at city, state, and federal levels that may help them expedite their reopening.

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