BURKE COUNTY, N.C. — A Morganton furniture manufacturer filed a lawsuit against its insurance company on Thursday, claiming the company acted in bad faith when it failed to pay out for flood damage sustained during Hurricane Helene.
EJ Victor filed the suit in U.S. District Court against Fireman's Fund Insurance Company on Nov. 7. According to the suit, EJ Victor's Morganton building suffered significant roof damage and severe interior damage due to flooding. The company says it suffered damages above $75,000 and is seeking an award of its actual damages in according with North Carolina state law.
The lawsuit states 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 Fireman's Fund on Sept. 30. On Nov. 5, the insurance company allegedly said it would deny coverage for the flood damage. Attorneys for EJ Victor say the manufacturer paid all premiums and complied with all requirements of the policy, stating it should be entitled to the full benefits and protections afforded by the coverage.
Attorneys claim that Fireman's Fund denied coverage on Nov. 5 saying the insurer told EJ Victor that it "cannot find coverage for the flood damage portion of the claim," and advising coverage is barred by an exclusion in the policy over the definition of flood damage.