Meth Labs pose an additional risk for Property Owners and Real Estate Agents
A staggering number of rented properties in Australia and New Zealand are being used for the illegal manufacture of the drug Methamphetamine turning the home into a clandestine Meth Lab.
The question then arises what steps are reasonable for a property owner and or their real estate agents to ensure the property is free from any contaminate left by such an operation. Some matters It is not always possible to see physical evidence during a routine property inspection.
Is it still reasonable to carry out a physical inspection alone or is it now prudent to carry out a test every time a tenant exits a property before a new tenant is allowed in. Is a home test available from some pharmacies enough? or should an expert in testing for the residue of a Meth Lab be engaged?
Then, of course, there is the question of insurance. Just looking at the Real Estate Agent for a minute, a large number of Professional Indemnity Policies exclude losses arising from contamination. You need to check for any endorsements added to the schedule that may take away the cover that appears to be covered in the policy itself.
I therefore urge insurance brokers to check the policies and schedules they have with their real estate clients and offer such clients to determine if this is an exclusion or not. Do not forget that you can always use the ‘Search by Product Feature” option in LMI PolicyComparison.com for either the Australian or New Zealand policies.
To learn more about the risk caused by Meth Labs please check out Steve Manning’s special report on his Insurance Bites YouTube channel. I enclose a link here for your convenience.