Diamond Carpet Warehouse Case Study
Diamond Carpet Warehouse Case Study

Case Study

Diamond Carpet Warehouse

Snow & Fire Causes Millions in Damage

Diamond Rug & Carpet Mills, Inc. was breaking industry records for growth and profits. Financial projections predicted another banner year.

However, during the early morning of March 13, one of the most powerful storms of the century dumped a record two feet of snow in northern Georgia. The roofs of four of Diamond’s six manufacturing plants collapsed. Most of the machines were damaged and sensitive equipment and inventory was exposed to freezing temperatures and huge amounts of water from melting snow and broken sprinkler lines.

While workers were using acetylene torches to expedite the reconstruction process, a fire accidentally ignited at Diamond’s distribution center and burned for over two weeks. The warehouse was completely destroyed and total damages exceeded $100 million. The company was virtually wiped out.

Having no experience in preparing insurance claims of this magnitude, Diamond hired National Fire Adjustment Co., Inc. NFA retained numerous experts to inspect and analyze the damaged and destroyed equipment as quickly as possible and to assist the company in commencing operations.

“NFA’s insight was invaluable to Diamond,” said Diamond president Ralph Boe. “They understood our insurance coverages, our building damages, our stock valuations, our equipment losses and , especially, our business income and extra expense claims,” he added. “NFA was instrumental in enabling Diamond to receive substantial partial payments from the insurance company, and this allowed us to stay afloat while we rebuilt the company. We knew they had other losses to adjust, but they always made us feel like we were their only client.”