Bobby Dalheim //Senior Editor of Case Goods and Global Sourcing
MORGANTON, N.C. – High-end domestic furniture manufacturer EJ Victor has sued its insurance provider for failing to pay for flood damage caused by Hurricane Helene, an alleged violation of the insurance policy.
According to the suit, filed Nov. 7 in the District Court for Western North Carolina, EJ Victor’s manufacturing plant in Morganton, N.C., suffered severe roof and interior damage due to flooding caused by Hurricane Helene late September. Specifically, the suit states that the interior of the property was “inundated by water carried into the building, submerging much of the ground floor and severely damaging the walls, furniture, furnishings and inventory, among other things.”
The company says it reported the damage to insurance provider Fireman’s Fund Insurance Co. on Sept. 30. On Nov. 5, EJ Victor allegedly received a notice from FFIC stating the insurance provider would deny coverage. According to the suit, FFIC’s reason to deny is related to an exclusion in the policy about what the definition of flood damage is. EJ Victor disputes the policy definition would exempt it from coverage.
“Although the policy plainly requires FFIC to pay EJV for its losses, FFIC has refused to do so,” EJ Victor said in the suit. “EJV has paid all premiums due to FFIC and has complied with all applicable duties under the policy. EJV is entitled to the full benefits and protections afforded by the policy.”
The company says the lack of coverage has created “crippling losses and significant problems.”
“In addition to loss of property, FFIC’s delay and denial has left EJV in a position in which it is unable to recommence business operations without a commitment of insurance funds to rebuild or relocate, which should never happen to a business that purchased insurance to cover exactly these circumstances.”
Damages allegedly amount to more than $75,000.
Neither EJ Victor nor FFIC have yet responded to Furniture Today’s requests for comment.