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ELK RIDGE — Evacuated because of the Pole Creek and Bald Mountain wildfires over the summer, a Utah County business owner said his insurance company denied his claim because his business wasn't 2,660 feet closer to the flames.
This past September, the facility residents at the Elk Ridge Assisted Living in Utah County were evacuated because of the Pole Creek Fire.
“We up and evacuated," Chris Hermansen, who owns the facility, said. "I got two buses and we evacuated as soon as we could. It was mandatory. You had to leave."
In all, 28 residents were evacuated and stayed at the Quality Inn in Payson for 9 days.
Hermansen said that when you count the cost of rooms, salaries for extra staff to take care of residents, and all the little extra supplies that were needed, it cost him about $17,000 out of pocket.
“I contacted my insurance company and they said, 'Your insurance (policy) should cover this. You have a big policy, it should cover it if the fire is within a mile of the building,’" Hermansen said.
However, that distance designation is the trick. Hermansen said his insurance company denied him because the assisted living center was 2,660 feet too far from the fire line, where he would have been covered — that’s just over a half mile.
“I’ve paid religiously on that policy and now when I actually need it?” Hermansen said, shaking his head.
His insurance company, Security Insurance out of Spanish Fork, said the matter was out of their hands and wasn’t the company who actually denied his claim. Security Insurance referred KSL’s call to Auto-Owner Insurance Company in Draper because they actually hold the policy.
In an email from Scott Michael, the company's vice president of marketing and sales based in Michigan, he said: “We have explained to Mr. Hermansen, Elk Ridge Assisted Living’s insurance policy states that damage to property from a covered cause of loss must be within one mile of the premise in order to be eligible to cover his claim. This is standard policy language.”
Hermansen said he understands rules and regulations, but as the only business in Elk Ridge, he is the only one who was denied insurance claims.
“Unfortunately, I’m the only business up here and my business policy is different than a homeowners policy,” he said. “I still couldn’t have said, 'Oh wait, everyone. I have to wait until this thing is this close before I can leave.’ Plus, I wouldn’t have done it based on a policy any way."
Even still, he’s happy the evacuation went well and no one was hurt.
“I hope this will never happen again, but it had the best outcome possible. Everyone is safe and taken care of and they’re back home,” Hermansen said. “My goal has always been: I want to treat these people like I would treat my mom and dad or my grandma and grandpa.”
A GoFundMe page* has been set up for Hermansen.
*KSL.com does not assure that the money deposited to the account will be applied for the benefit of the persons named as beneficiaries. If you are considering a deposit to the account, you should consult your own advisors and otherwise proceed at your own risk.
