Insurance Cover

Your insurer will cover the cost of decontaminating and restoring your property if you find out itโ€™s been turned into a mini meth lab, right? Wrong.

There are a few things to look out for in your policy:

1. Exclusions - some policies may outright exclude drug-related damages

2. Caps on the amount of cover available - some policies limit cover for loss to $25,000 - which can disappear very quickly due to the high costs for decontamination

3. Meeting certain obligations as a landlord - some policies detail a list of actions that landlords must take to be covered for drug related contamination.
This can include:
  • Exercising reasonable care in the selection of tenants by at least obtaining satisfactory written or verbal references
  • Completing an internal and external inspection of the house at least every three months and upon every change of tenant
  • Keeping a written record of the outcome of each inspection so you are able to provide a copy of the record if requested.

4. Proving the contamination happened when you were insured - in this scenario, you would need to do the testing upon taking out a policy so that you can prove when the contamination occurred.

An important thing to bear in mind when looking at insurance cover for unlawful substances, is that each case is looked at on an individual basis.

As every insurer has a different scheme, our property managers encourage landlords to have a close look at what exactly their policy covers.

Worried about your property?

If you're concerned about contamination in your rental property or properties, speak to your property manager.