A Missouri shopping center owner is suing Auto-Owners Insurance in federal court, claiming the insurer severely undervalued a storm damage claim worth more than $2 million.
Paddock Equity Investors, which owns the Paddock Hills Shopping Center in Florissant, Missouri, filed the lawsuit on September 29, 2025, in the U.S. District Court for the Eastern District of Missouri. The property suffered damage during a wind and hail storm on July 17, 2023.
According to the complaint, the storm caused serious damage to multiple parts of the shopping center, including flat and asphalt shingle roofs, gutters, downspouts, metal flashing, and HVAC units. The building is made of concrete masonry and multi-wythe brick, with roofing materials such as TPO, modified bitumen membranes, and fiberglass-mat asphalt shingles. The property was insured for losses caused by wind and hail.
Paddock informed Auto-Owners of the damage around August 22, 2023. The insurer assigned a claim adjuster and conducted inspections through third-party experts. One forensic engineering firm found wind damage to shingles and gutters but denied any hail damage on the roofs. Their repair estimate was roughly $15,700, with an actual cash value payout of just over $10,400 after depreciation. Auto-Owners later denied coverage for most of the damage, stating it was from wear and tear or pre-existing issues and cited a deductible of more than $123,000.
Disagreeing with these findings, Paddock hired RestoreMasters, who estimated repairs at just over $2 million. Another engineering report found widespread hail and wind damage, including moisture intrusion under the roofing systems, damaged HVAC units, and parapet and flashing issues, concluding that full roof replacement was necessary.
Supplemental reports from Auto-Owners’ experts in 2024 and early 2025 confirmed some weather-related damage and hail on HVAC units, but maintained that parts of the roofing were undamaged and did not fully assess water intrusion. A further inspection found hail damage on 22 of 57 HVAC systems, recommending repairs or replacements for these units.
Auto-Owners offered a revised repair estimate in June 2025, totaling about $145,000 before depreciation, resulting in an actual cash value around $66,000—still far below Paddock’s estimate.
The lawsuit accuses Auto-Owners of failing to properly investigate the claim, overlooking evidence of hail and wind damage, and delaying payments. Paddock says it has fulfilled all policy requirements and is seeking damages exceeding $75,000, plus interest and legal costs. As of the lawsuit filing, Auto-Owners has not responded.
This case highlights ongoing tensions between commercial property owners and insurers over how large damage claims are evaluated and paid. The outcome could shed light on how insurers handle claims after severe weather events and the challenges businesses face in getting fair settlements.