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ZT Motors Holding GP LLC has filed a complaint in the U.S. District Court for the Southern District of Texas, accusing its insurance provider, American Southern Home Insurance Company, of dodging $2 million in claims for damages sustained during Hurricane Beryl.

According to the complaint filed Wednesday, ZT Motors maintains it had an active insurance policy at the time Hurricane Beryl struck in July of last year, causing extensive roof damage and severe water intrusion to multiple dealership buildings. While independent consultants hired by ZT Motors confirmed the widespread damage, American Southern’s agents allegedly downplayed and mischaracterized the extent of the losses to avoid fulfilling their contractual obligations.

"American Southern has systematically minimized or mischaracterized the damages suffered by plaintiff in such a way to totally deprive plaintiff of the benefits owed to it under the policy," the dealership stated in court filings.

The insurance company engaged American Claims Management and the Littleton Group, among others, to inspect the property. Despite clear evidence of storm-related damage, these adjusters repeatedly concluded the damages were below the policy deductible. The insurer also disputed that the storm caused interior water damage or necessitated temporary roof repairs, claims ZT Motors vehemently disputes.

ZT Motors alleges American Southern’s conduct violates the Texas Insurance Code, breaches their contract, and breaches the Texas Deceptive Trade Practices Act. The dealership is seeking actual damages, exemplary damages, attorney fees, and interest.

"American Southern failed or refused to make payments for covered damages, including recoverable depreciation, code payments, ordinance and law payments, and other damages. This was part of a systematic plan by American Southern to underpay, or not pay at all, damages that it knows are covered under the policy," the complaint reads.

ZT Motors is represented by legal counsel from Raizner Slania LLP. American Southern Home Insurance Company has not yet responded to requests for comment.