lab in rental homePlease see this important link – drug lab in residential rental home

 


House Insurance: Am I Covered?

The insurance profession is divided in its opinion as to coverage afforded under traditional home and contents policies, particularly where the property is tenanted (around 64% of meth labs are found in rented properties). Is the resultant hazardous environment classed as malicious damage by tenants, is it accidental damage or is it excluded entirely?Regardless of the interpretation, premises used as meth labs are generally unfit for human habitation until such time as the premises is inspected and scientifically analysed as safe to live in.

In July, 2011, there was for the first time ever a National Meth Lab Conference to address a congress on behalf of the industry to discuss the issues, the fears, the reality and the future of Drug labs being found in property, particularly rental property. While the issue is prevalent in the US and in New Zealand, the number of clandestine drug labs in Australia is growing exponentially and is fast becoming a serious issue.

Given the seriousness of the toxic chemicals used to make the illicit drugs (such as speed, ice, ecstasy and amphetamine based drugs); it creates a highly explosive and dangerous environment, and because of this, all property managers, salespeople, owners,buyers, sellers, and new tenants need to be aware of general indicators and what to look for in relation to a drug lab being used at a property.

What you should look for that may indicate the presence of a Meth or Drug lab in the property.

  • Windows blackened out or extra efforts made to cover windows or reinforce doors
  • Evidence of unusual electrical work surrounding the premises
  • Fan or pump type noises
  • Noticeable hoses and pipes near windows or doors for ventilation or water supply
  • Installation of extractor fans (especially in garages/sheds)
  • A new tenant that is willing to pay rent months in advance with only cash
  • New applicants who try to avoid having background checks completed
  • Residents who never put their rubbish out, or burn their trash
  • Lab material surrounding property (butane fuel cans, stained coffee filters, clear glass jugs and duct tape).
  • Inhabitants smoking outside – due to fumes
  • Large plastic containers with, or without chemical labels
  • Little or no traffic during the day, but lots of traffic at extremely late hours
  • Recently rented premises where occupants are rarely there
  • Laboratory glassware being carried into a residence (unusual glassware and excessive amounts of glassware)
  • Strong smell that might resemble urine, or unusual chemical smell like ether, ammonia or acetone
  • Dying grass or plants in a particular area.

Does insurance cover  landlords?

It is not yet clear if landlord protection companies will provide coverage for landlords should a lab be found in their property. Some of the major insurance companies have indicated that some coverage may be provided now for landlords under some types of landlord protection insurance;as to the actual extent of cleaning and remediation costs that will be provided under policies is not yet clear. Property managers and landlords may wish to make enquiries with their insurers to investigate their policy further.Cleaning and remediation costs are estimated to be in the thousands of dollars if the property is cleaned according to the National Guidelines.

 

What should you do if you are suspicious?

If you are suspicious of any unlawful drug related activity, you should contact crimestoppers immediately on 1800 333000, and then your local police station. Never enter a property if you suspect drug activity and always be mindful that your safety and security is the number one priority in any situation.

What about cleaning?

With the growing magnitude and seriousness of this alarming problem, the Federal Government released ‘national cleaning guidelines’ in recent months. Although these are only guidelines and not yet law (that is expected to come in the future), it is strongly recommended that landlords be advised to follow the cleaning and remediation guidelines should a drug lab be found in their rental property.

Cleaning and remediation is a big issue facing the industry not only because of the costs involved, but also the time taken to carry out the cleaning. There is no avoiding this, however, the risk of future litigation is extremely high should the guidelines not be followed.

Please contact us if you require initial surface testing, or specialist drug lab cleaning, or substance transfer cleaning.