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Tornado Payout Fight: Insurer vs. Gas Station Owner
21 Nov
Summary
- Gas station owner sued Erie Insurance over a low tornado damage payout.
- Insurer offered $704.77 payout, owner sought over $141,000.
- Owner claims insurer ignored evidence of deeper roof saturation.
A Nashville gas station owner has taken Erie Insurance to federal court, alleging the company mishandled its claim for tornado damage sustained in December 2023. Yellowbird Oil & Gas asserts that the insurer’s payout offer of $704.77, after a $2,500 deductible, is drastically insufficient compared to the $141,095.86 estimate from their own adjusters.
The core of the dispute lies in differing interpretations of the storm's impact. While both parties agree the tornado damaged the roof, Yellowbird claims Erie disregarded evidence, including infrared imaging, showing water intrusion into the substructure. They argue that patching the roof over saturated areas violates building codes and that further testing was neglected.
Yellowbird Oil & Gas is suing Erie Insurance for breach of contract and vexatious claim handling under Tennessee law. They are seeking damages up to their policy limits, a 25% penalty, and attorney fees, alleging intentional and reckless handling of their claim. The case is currently in its early stages.
