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Xcel Energy Sued: 155 Insurance Companies Files Lawsuit Due To The Marshall Fire Losses

Xcel Energy Sued: 155 Insurance Companies Files Lawsuit Due To The Marshall Fire Losses

Xcel Energy Sued_ 155 Insurance Companies Files Lawsuit

On 30th December 2021, a deadly fire caused a lot of damage (of over $2 billion) as well as deaths in Boulder County in Colorado. As per the result of a 17-month investigation of the incident, it has been found that the fire started as a result of a faulty power line of Xcel Energy.

The power line arced and sent the metal’s burning pieces into the dry brush at a park. Furthermore, as per the investigation, the blame was also on the lingering embers from a debris fire that started a week ago. This fire started on a property owned by a religious cult called Twelve Tribes.

However, 155 insurance companies sued Xcel Energy for the damage caused, and the lawsuit was filed on Thursday in the Boulder County District Court. The lawsuit does not name any Twelve Tribes members as the defendants. The lawsuit also does not contain any detail or specification of the amount of money that the insurance companies are in demand from the utility.

According to The Denver Post,

The insurance companies have an obligation to reclaim some of the money on behalf of their policyholders, she said. If the companies end up paying billions of dollars in claims, premiums for all Colorado homeowners will go up.”

The companies tried to reach the officials of Xcel Energy on Monday and were much unsuccessful. The company maintained that it “strongly disagreed” with the investigation that the power lines were the cause of the fire in the 2021 disaster.

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Many experts said that these lawsuits are common among insurance companies when a fault is found with another business or individual. Furthermore, they also maintained that even if the judge rules in favor of the insurance companies, they will still struggle to receive payments.

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