by Company said failure to cover the full damages has left it in a position in which it is unable to recommence business operations
MORGANTON, N.C — Luxury furniture manufacturer EJ Victor has filed a lawsuit against insurer Fireman’s Fund Insurance Co. for failing to cover certain damages related to Hurricane Helene.
The lawsuit, filed Nov. 7 in the U.S. District Court for the Western District of North Carolina, states that while it paid a substantial premium for coverage protecting its business from physical damage, including catastrophic weather events, FFIC failed to pay for a substantial portion of its losses from Hurricane Helene on Sept. 26-27.
The lawsuit said that FFIC sold the company an insurance policy effective from June 1, 2024, to June 1, 2025, and accepted the premiums paid by EJ Victor. EJ Victor said the policy defines the insured property to include both its real and personal property and includes its address at 110 Wamsutta Mill Road as one of its covered locations.
It further noted that during the hurricane, “high winds caused rain and other debris to be carried, propelled and moved at a rapid velocity toward and into the property. The property’s roof sustained significant damage and the interior 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.”
EJ Victor said that on Sept. 30, it provided the insurance company notice of the damage and made its claim for coverage. On Nov. 5, it said that FFIC wrote to the company and said it was denying coverage for the flood damage portion of its claim. “FFIC’s denial advised that FFIC cannot find coverage for the flood damage portion of the claim,” the lawsuit states.
“The losses and damages sustained by EJV were caused by and would not have occurred but for the occurrence of Hurricane Helene,” the lawsuit states. “Moreover, the policy cannot exclude coverage for flood without the statutory warning mandated by North Carolina General Statutes. … EJV, therefore, is entitled to coverage.”
It goes on to state that “FFIC’s refusal to confirm a clear case of coverage has created significant problems for EJV and has resulted in and will continue to result in severe damages. In addition to the crippling losses to EJV’s property, FFIC’s delay and denial have 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.”
The company has requested a jury trial on the matter. In addition to the payment of its claim, it also is requesting the payment of attorneys’ fees, expenses and other costs relating to the lawsuit and is requesting the award of pre-judgment and post-judgment interest at the maximum allowable rates.
EJ Victor CEO Richard Oliver declined to comment because of the pending litigation. FFIC did not respond to a request for comment.
