LOGAN – A couple is suing Erie Insurance Company after they claim it breached its contract with them.
Woodrow Gillispie and Vicki Gillispie own a residence in Logan County and purchased an ErieSecure Rental Insurance Policy that was effective from Aug. 31, 2016, to Aug. 31, 2017, according to a complaint filed Oct. 20 in Logan Circuit Court.
The Gillispies claim after an inspection by Erie, the Gillispies were directed to make certain improvements to the dwelling at the residence premises, namely to install railing around the front porch, to repair uneven steps and to remove a solid fuel buring stove.
On Oct. 17, 2016, Erie mailed a notice of cancellation to the Gillispies with an effective date of Nov. 21, 2016, according to the suit.
The Gillispies claim prior to the receipt of the notice of cancellation, they had made the improvements as directed by Erie and provided photographic proof to Erie through one of its agents, Wesley Walls.
Upon receiving the notice of cancelation and a premium refund check, the Gillispies contacted Walls and Walls directly communicated that the policy was good and to dispose of the policy refund check, according to the suit.
The Gillispies claim Erie continued to accept automatic electronic funds transfers of premium payments after they nullified the policy.
On Aug. 26, the dwelling and construction material at the residence were totally destroyed by fire and the Gillispies timely provided Erie with notice of the loss and complied with all of the provisions of the policy, according to the suit.
The Gillispies claim Erie failed and refused to indemnify the plaintiffs pursuant to the policy agreement.
Erie breached its contract with the plaintiffs and willfully, maliciously and intentionally used unfair business practices in failing to settle the plaintiffs’ claim, according to the suit.
The Gillispies are seeking compensatory and punitive damages. They are being represented by Jeffrey S. Simpkins of Simpkins Law.