BOISE, Idaho — On Wednesday, the Idaho Youth Ranch sued its insurer, Alliance Member Services, Inc., and Swiss RE Corporation Solutions Elite Insurance Corporation, for $10.7 million in "covered losses" following July 2022's devastating fire.
"That's the amount we believe the Idaho Youth Ranch is owed by our insurance company," CEO Scott Curtis said.
The fire torched the side of the nonprofit's Boise distribution center and the outside yard, resulting in the loss of inventory and a warehouse. The Boise Fire Department ruled the cause of the fire as 'undetermined' on because of the efforts used to extinguish it.
Curtis said the insurer gave them some money, but not enough to make up for the hit their 24 thrift stores took, which rely on donations from community members.
"We have a really extensive process of taking the goods they donate, sorting them efficiently, even storing them for the seasons where customers want to see them the most," he said," that's been the stuff really interrupted by this fire."
Curtis said many thrift stores cut back on donation hours because of the nonprofit's inability to process and store goods like they were able to before the fire.
KTVB reached out to the insurer for an interview but has not heard back. According to the complaint, the insurance company says business income coverage is available only for losses at the distribution center because that's what the fire physically damaged ... not the thrift stores themselves.
Curtis disagrees.
"We have many thrift stores across the Treasure Valley that are serviced by this [distribution center]," he said," and so they have been impacted for the last 18 months in terms of their ability to get the revenues that they would have. So, we are entitled to reimbursement for that business loss."
Curtis said suing was a last resort.
"We've just gotten to the spot where we've said, 'we can't put more time in in not getting the answers we need," he said. "We need to move to another level in order to get answers."
The Idaho Youth Ranch wants a trial. A spokesperson said they are waiting for the insurer to file a legal response.
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