Lloyds of London rejects claim after hash oil explosion destroys Colorado house
Published: Dec 20, 2017, 9:57 am • Updated: Dec 20, 2017, 2:22 pm
By Kirk Mitchell, The Denver Post
Venerable insurer Lloyds of London once covered actress Betty Grable’s legs for $1 million each, but a lawsuit in federal court makes it clear its practice of unusual policies doesn’t include secret hash oil production or any resulting explosions.
Underwriters of Lloyd’s on Tuesday filed a lawsuit in U.S. District Court in Denver seeking a judicial declaration that the insurance company doesn’t owe a Bailey, Colo., family any money on a $1.2 million policy after their home exploded.
The lawsuit filed by Denver attorneys Patrick Hustead and Aaron Bell on behalf of Lloyds, which is based in London, accuses Patricia Woody of failing to reveal that family members ran a business in their home — specifically that they were growing pot and manufacturing hash oil, the lawsuit says.
Members of the Woody family including Zachary Woody were growing 300 marijuana plants inside the home at 1443 S. Ridge Road and were producing hash oil with equipment that included tanks containing butane gas.
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On March 10, hash oil exploded and caused a fire that injured Zachary Woody and two of his friends, Jerome Howard Jr. and Tamika Howard. The three suffered severe burns, the lawsuit says.
When a claims adjuster inspected the property on March 27, Scott Woody, Zachary’s father, said when he bought the property in December with the intention that his son would use it as a grow house business.
Lloyd’s of London reimbursed Patricia Woody for $1,573.88 in premiums and she deposited the check on Nov. 29, the lawsuit says.
The lawsuit says Lloyd’s contract made it clear the company does not cover fraud or bodily injuries arising out of criminal acts or the manufacture of controlled substances including marijuana.
This story was first published on DenverPost.com
Topics: Colorado, hash oil extraction explosion, insurance
