They lost valuables in the Harborside Inn fire. Now they're caught in insurance limbo.

NEW SHOREHAM – Guests of the Harborside Inn find themselves in limbo as insurers point fingers instead of covering losses from the August blaze that destroyed the historic structure, along with it visitors' cellphones, bridesmaid dresses and other belongings.

Nicole Glorioso and her boyfriend, Zachary Falconeri, incurred more than $5,500 in losses after fleeing down crooked stairs at the Harborside around 11:25 p.m., on Aug. 18 with just their clothes and her purse. Left behind were his shoes and cellphone, dress clothes for a wedding the next morning at the Spring House, a watch, and, most importantly, the gold and diamond ring Glorioso had inherited from her grandmother, Stella Kovac.

“I had just gotten that ring,” Glorioso said.

Hotels guests get the runaround from insurance companies

Since the fire, the couple has done their due diligence, documenting their losses with the hotel’s insurer, Ategrity Specialty Insurance Co.

On Oct. 26, Ategrity sent Glorioso, other guests and employees of the Harborside this notice:

“We have completed our investigation into the incident and feel that the party at fault is the Harbor Grill and have tendered the matter to them,” claims representative David Zerrillo wrote. “The fire started in the kitchen and the kitchen operation was leased to them by the Harborside Inn.”

“Not only do we feel that they are responsible, but they are under a contractual obligation and indemnity [sic] the Harborside Inn,” he continued.

He advised them to contact the restaurant’s insurer, Greater New York Mutual, through claims representative Heidi Frakl.

But on Nov. 15, Frakl notified Glorioso and others: “Please be advised that the fire investigation is currently ongoing and liability has not been determined to date.”

The restaurant had about $1 million in coverage, Frakl said in the notification, leaving Glorioso with the impression that pursuing a claim with Greater New York Mutual might be a dead end.

“If you have homeowners or renter’s insurance, you may pursue a claim through them,” Frakl continued.

“I’m not going to do that," Glorioso said. "My premiums will go up."

Frakl and Zerrillo did not respond to requests for comment.

Stuck in the middle

Now guests like Glorioso and Renee Reed, both of Connecticut, are wondering what’s next. They remain stuck in the middle and without coverage for belongings lost months ago and valued in the thousands of dollars.

“I’m not looking for money. I’m looking for closure,” Glorioso told The Journal this week.

She was so distressed about the loss of the ring, which she took off because her fingers were swollen after a day of leisure on the island, that she handed out notes describing it to fire and police officials at the scene of the fire.

All the Harborside guests escaped the building unharmed.

Preliminary rebuild plans win approval

Glorioso’s concerns come after the Block Island Historic District Commission’s preliminary approval for plans to rebuild the 19th-century inn, which was demolished shortly after the fire left it uninhabitable.

“The plans look great. I thought it was a great improvement,” commission vice chairwoman Martha Ball said last week.

Plans for a potential replacement, designed by architect Glen Fontecchio, feature the same sweeping front porch, mansard roof and ground-level shops. The new inn would have the same owner, VVO Real Estate Holding Corp.

But Glorioso wondered how the estimated $8.5-million construction cost indicated on the proposal will be covered if she can’t secure insurance coverage for the shirts and shoes they lost in the blaze.

Michael Finnimore, who is a co-owner of the Harborside with his ex-wife, Vaux Finnimore, said in an email that they are urging hotel guest to call the Insurance company or reach out to their renters' or homeowners insurance company, if they have it.

Finnimore said the final cost of the rebuild has not been nailed down yet, but that they are working with the engineer and architects.

The Harbor Grill was leased by Atanas Krastev, who could not be reached for comment.

Faulty fire-suppression system, grease build-up

An investigation into the fire concluded that the fire-suppression system in the inn's kitchen didn't work and had been wrongly tagged as complying with the fire code, according to a report from the state fire marshal's office outlining the causes of the massive fire.

Plus, the kitchen exhaust hood hadn't been cleaned properly, and built-up grease probably helped to accelerate the fire, which traveled up through the walls to the attic of the structure.

In the aftermath, the state suspended and later revoked the Journeyman Extinguishing Equipment License of the inspector who marked the system compliant, Peter Freund, owner of Emergency Services of New England LLC.

More: Block Island could have been 'the next Lahaina' during hotel fire. How downtown was saved.

`Egregious' violation by inspector

Freund was operating under a license issued in 2021 and renewed last March when he inspected the kitchen exhaust hood's fire-suppression system in the Harborside Grill in April 2023.

The Fire Safety Code Board of Appeal and Review last week upheld that revocation, citing Freund for “egregious” violations of the state fire code in its findings. The board said gravity of the violations and Freund’s admission to signing off on the failed system justify the revocation.

In addition, the board characterized Freund’s testimony as “evasive, indirect and devoid of credibility.”

Freund, of East Hampton, Connecticut, was given 30 days to appeal that decision to the Sixth Division District Court if he so chooses.

“As to any criminal charges within the purview of law enforcement, I would refer you to the Office of the Attorney General,” Matthew Touchette, spokesman for Rhode Island Commerce's Department of Business Regulation, said Friday in an email.

Brian Hodge, spokesman for Attorney General Peter F. Neronha’s office, did not respond to email, text and phone inquiries from The Journal on Friday seeking an update on the investigation of the Harborside fire.

Freund, then the owner of the fire-safety firm AAA Fire & Safety, served four months in prison after he pleaded guilty to fraud in federal court in Connecticut in 2000. He admitted that he told customers he was testing fire extinguishers when he had failed to do so, federal prosecutors said. He would stamp the extinguishers as certified and then bill customers.

This article originally appeared on The Providence Journal: Months after Harborside Inn fire on Block Island, guests caught in limbo