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Lloyds of London rejects claim after hash oil explosion destroys Colorado house

21 December 2017

Venerable insurer Lloyds of London once covered actress Betty Grable’s legs for $1 million each, but a lawsuit in a US federal court makes it clear its practice of unusual policies does not include secret hash oil production or any resulting explosions.

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According to a report on DenverPost.com, Lloyd’s underwriters filed a lawsuit in a US District Court in Denver on December 19 seeking a judicial declaration that the insurance company does not owe a family based in Bailey, Colorado, any money on a $1.2 million policy after their home exploded.

The lawsuit 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 house and were producing hash oil with equipment that included tanks containing butane gas.

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 he bought the property in December with the intention that his son would use it as a grow house business.

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.
 


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