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Medical practice accuses Auto-Owners of stalling Helene flood claim
The Asheville practice says it documented more than $300,000 in flood losses and was later denied or underpaid despite earlier statements about coverage and possible advance payments.
A North Carolina medical practice is suing Auto-Owners Insurance Company, alleging the insurer and related claims handlers delayed handling of a Hurricane Helene flood loss and ultimately denied coverage the practice says should have been paid. Ashewell Medical Group and its landlord, Boxee Holdings, filed the lawsuit in federal court on July 15, describing the flooding event as centered on their Asheville office and in-house pharmacy after Hurricane Helene in September 2024. The complaint alleges the insurer shifted coverage positions and denied a covered flood loss following the storm. The dispute involves a Standard Flood Insurance Policy, or SFIP, under the National Flood Insurance Program, with the plaintiffs saying they were insured under a policy that provided up to $500,000 in Coverage B for personal property. The practice says it documented more than $300,000 in flood-related damage, including interior walls, ceilings, flooring, tenant improvements, and medical and pharmacy inventory.
According to the complaint, the assigned flood adjuster told the practice in a February 14, 2025 email that contents losses and building improvements and betterments would be covered and paid once verified, up to 10% of the $500,000 limit, and that an advance payment of about $50,000 could be submitted. The filing says claims were later denied or underpaid on grounds including that the losses were not covered and that documentation was insufficient, and it also alleges an administrator did not request a sworn proof of loss until June 24, 2025.