Insurer Files Lawsuit Alleging Iowa Developer Destroyed Home

A developer and his wife are accused in a federal lawsuit of being responsible for a fire that destroyed their 13,000-square-foot house in Urbandale, Iowa.

American Family Mutual Insurance Company alleges John Kline and his wife, Michelle, concealed information about the nature and circumstances of the Feb. 9, 2009 fire, which remains under investigation.

The lawsuit contends the couple was attempting to fraudulently collect damages for the loss of the house and a vintage Corvette under a homeowners and auto insurance policies.

The lawsuit asks the court to remove American Family’s responsibility to make payment to the Klines for the losses.

Attorneys for Kline were unavailable for comment.

Kline is a longtime central Iowa developer with a variety of companies. In September, his attorney, Jerrold Wanek, said Kline is being investigated by the U.S. attorney’s office.

Information from: The Des Moines Register