Hope Warehouse Owner Sues Insurer Over $1.8M Storm Damage Claim

The owner of a Hope warehouse has sued an insurance carrier for denying a $1.8 million claim to
cover damage from a 2023 storm.

Hopeful Properties LLC filed suit last month against Federal Insurance Co. of Whitehouse Station, New Jersey, in federal court in Texarkana.

CPI Holdings LLC, which provides new and remanufactured parts for vehicles, leased the property from Hopeful and was the named insured under the policy. Before the lawsuit was filed, CPI assigned its policy rights to Hopeful Properties. The policy had a cap of $12.6 million, according to the lawsuit filed by J. Brandon McWherter of Brentwood, Tennessee.

Hail and wind in March 2023 caused “immediate and substantial direct physical loss and damage to the Property,” according to the lawsuit. Hopeful Properties and CPI asked Federal Insurance to pay for repairing the damage.

Federal Insurance, however, said the hail event happened before it had issued the policy.

Hopeful Properties is suing for breach of contract and bad faith. As of Wednesday morning, Federal Insurance had not filed a response to the lawsuit. It is a part of the Chubb Group, and a spokesman didn’t immediately return a message for comment.