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AmGuard sues loanDepot over alleged butane-caused $1.5M fire
AmGuard is seeking more than $1,503,404.47 in reimbursement after the fire damaged a commercial suite in a Palm Desert strip mall.
Insurance Business reports that AmGuard Insurance Company has sued loanDepot.com, LLC in federal court, seeking recovery of more than $1,503,404.47 it paid to its policyholder after a fire caused significant property damage.
According to the lawsuit, a loanDepot employee allegedly hired a woman to clean the premises, allowed her to stay overnight, and left the office alone with no other loanDepot staff present, which the complaint says violated building, fire, and safety codes.
The filing alleges that in the early hours of April 14, 2024, the woman discharged butane gas into a wall void and then ignited it, starting a fire that the lawsuit says cost a nearby pizza shop more than $1.5 million.