Brokers urged to check property covers amid cannabis "menace"
Questgates has warned brokers to check their property owners' covers amid a rise in UK cannabis factories.
Questgates has warned brokers to check their property owners' covers amid a rise in UK cannabis factories.
A recent report by the Association of Chief Police Officers found that the number of farms being unearthed has more than doubled in four years.
The survey found more than 21 cannabis factories were uncovered daily in Britain last year with 7,865 found in total.
And the loss adjuster has urged brokers to ensure the covers held by their property owner clients do not exclude illegal activity.
Simon Jones, head of Questgates property owners division described the "menace" of cannabis farms as an increasing problem, especially in private rented houses.
"We've been involved in a growing number of claims relating to malicious damage by so-called tenants that turn out to be related to cannabis farming," he said.
"In particular we have seen a number of claims where fires have been caused by lighting used for such purposes overheating or developing electrical faults or where properties have suffered water damage from hydroponic installations."
Mr Jones continued that Questgates has noted a rise in insurers requesting landlords to maintain a log of property inspections and also seen some exclude liability for claims resulting from drug-related damage.
He added: "It is therefore essential that brokers both review and understand policy cover in this respect to ensure that their property owner clients understand the potential risk and take the necessary steps to mitigate them.
"Failure to do so could result in declinature of liability by an insurer if a problem does occur."
http://www.insuranceage.co.uk 13/07/2012
S
Soft Secrets
