The destructive force of crystal meth or ice on lives, families and communities due to its cheap production, ready availability and highly addictive quality is being felt far and wide and now even more so by insurance companies.
Checks of properties that have been used to ‘cook’ ice or smoke it are being found to be chemically contaminated by the drug’s dangerous residue.
And the clean-up bill for landlords and homeowners can be devastating.
It has been reported that insurers in New Zealand have experienced a spike in claims for chemical residue clean-ups and as a result have now moved to cap payouts and increase excesses.
The change increases pressure on landlords and property managers to vet tenants more thoroughly and conduct regular inspections.
Australia is also experiencing increasing levels of crystal meth production and abuse, particularly in rural areas.
It is therefore natural to expect that Australian insurers will also begin to review and reconsider their treatment of claims associated with the repairs and clean-up of chemical residue from crystal meth.
It’s a warning sign worth considering if you are the owner of a rental property.
Rest assured that if your property is insured by MGIB’s Landlords Residential Property Insurance, you will be covered for the cost of repairs and the clean up bill if a drug lab is discovered at your rental property.