In the shadow of Hurricane Helene’s wrath, Asheville’s bustling hotel scene has turned into a battleground, with owners firing back at insurers over rejected claims worth millions—claims that could make or break their recovery.
As Hurricane Helene insurance denial stories flood headlines in 2025, McKibbon Hotel Group is leading the charge, suing a Liberty Mutual subsidiary for $12.5 million in business interruption claims after water outages shuttered eight downtown properties for 52 grueling days. This high-stakes clash highlights a surge in business interruption claims denials plaguing Western North Carolina, where tourism-dependent businesses reel from the storm’s $60 billion toll.
The lawsuit, filed August 27 in the U.S. District Court for the Western District of North Carolina, targets Employers Insurance Company of Wausau. McKibbon argues that the lack of potable water post-Helene—despite no direct structural damage—qualified as a “direct physical loss” under their $1.4 million policy, forcing closures from September 27 to November 18, 2024.
That period slammed peak fall tourism hard. Buncombe County’s sales cratered 75% in October 2024, dipping from $73 million to $18 million, worsened by roadblocks and then-Gov. Roy Cooper’s travel warnings. McKibbon’s portfolio—spanning the AC Hotel, Kimpton Hotel Arras, Aloft Asheville Downtown, Moxy Asheville, restaurants like Bargello and District 42, plus a parking garage—lost vital revenue, prompting the multimillion-dollar demand.
Insurers countered swiftly. On August 26, Employers preemptively sued McKibbon, insisting coverage demands physical damage, not mere utility disruptions from floods—a stance echoing broader Hurricane Helene insurance denial patterns. The denial came in early January, citing exclusions for indirect flood-related economic hits.
This isn’t isolated. The Mountain BizWorks 2025 Small Business Survey, polling over 700 firms, flagged claim denials as the top headache for Helene-hit operations. East Fork Pottery, for instance, is suing Travelers Insurance for $1.2 million in similar losses, signaling a wave of litigation in the storm’s wake.
Experts paint a grim picture. Matt Raker, Executive Director of Mountain BizWorks, told the Citizen-Times on August 25 that even well-resourced businesses with lawyers and adjusters are resorting to court, underscoring systemic barriers in payouts. “Sophisticated operators are struggling,” Raker said, pointing to delays that could cripple rebuilds.
JB McKibbon, president of McKibbon Equities, voiced frustration on September 2: “We paid for this coverage to protect our associates and the community—now we’re fighting to enforce it.” Liberty Mutual’s Richard Angevine declined comment, citing ongoing litigation.
Public outcry boils over on social media. X users vent raw anger: One Asheville homeowner, @KathyDixon191, shared on August 6 how her flood-ravaged home’s claim got axed despite years of premiums, vowing to sue. @pixxipie echoed the betrayal on September 8, slamming Assurant and Progressive for rejecting car and septic fixes tied to Helene. @gaflatlander tied denials to political bias on September 14, claiming FEMA skipped Trump-flag homes. Law firms like @BoggsLaw amplify calls for help, posting recovery tips amid the chaos.
Nationally, Senator Josh Hawley (R-Mo.) blasted insurers on January 24 as peddling “morally obscene” rejections, demanding accountability for Helene victims. In Florida, reforms have backfired, hiking denial rates to 46.7% in 2024 from 40% in 2022, per recent reports.
For U.S. readers, the fallout stings economies and lifestyles. Western North Carolina’s $5 billion tourism engine—hotels alone generate $1.2 billion yearly—faces prolonged slumps, rippling to jobs in hospitality and beyond. Small business owners, already squeezed by 3.5% inflation, risk bankruptcy without swift payouts, per BLS data.
Politically, it fuels debates on federal aid versus private coverage, with calls for NFIP expansions amid climate-fueled storms. Tech-savvy victims turn to apps like ClaimRite for denial appeals, while sports tourism—think Blue Ridge hiking—grinds to a halt.
User intent spikes around “Hurricane Helene insurance denial appeals,” up 150% in September per Google Trends, as owners hunt guides. Management pro tip: Document everything—photos, outage logs—and file within deadlines; South Carolina’s guide stresses bad-faith suits for undue delays. Consult firms like Merlin Law Group for free reviews.
As more suits loom—deadlines hit September 26 in some states—the insurance wars could reshape post-disaster recovery, pressuring carriers for fairer policies amid 2026 storm seasons.
In wrapping up, hotel owners’ accusations against major insurers for denying multimillion-dollar business interruption claims post-Hurricane Helene expose a fractured safety net, but rising lawsuits and scrutiny signal potential reforms—offering hope for swifter justice and stronger protections ahead.
By Sam Michael
October 3, 2025
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