Insurer Says It’s Not Liable for Drug-Related Fire in Michigan

An insurance company claims it should be reimbursed after a fire linked to drugs badly damaged a house in Bay City, Mich.

Nationwide Mutual Fire Insurance of Columbus, Ohio, has filed a federal lawsuit seeking to recover $160,200 for a January fire. The insurer claims the fire was caused by a man who was extracting oil from marijuana for sale.

The company says homeowner Kasey McDermott had an obligation to disclose what was happening in the basement of her home. McDermott’s phone number was not in service, and she could not be reached for comment on the lawsuit.

The lawsuit says most money paid by the insurer went to McDermott’s mortgage holder.