Is your property ‘Smoking’? What to Look Out For

May 12, 2011 - PRLog -- According to recent data from Aviva, one of the UK’s leading insurance companies, farming of cannabis in residential properties is expanding rapidly. Its figures show that there was a 30% rise in the number of claims relating to this illegal practice during 2010, compared with 2009.

More than 750,000 cannabis plants were seized during 2009/10 and in 83% of cases, there were 50 plants or fewer.

The problem facing landlords is that a high percentage of the larger cases were in tenanted properties. The cost of putting right the damage caused by the ‘conversion’ required to make indoor cannabis farming possible can run into tens of thousands of pounds – not to mention the possibility of structural damage from water and so on. In addition, this form of activity increases the risk of fire.

Aviva says that it settled more than 90 claims in 2010 for cannabis farms that had damaged the property owned by landlords. However, monetary settlement is unlikely to be sufficient to compensate for the massive inconvenience caused to the property owner, including as the result of a police investigation and prosecution of the criminals involved.

What to look out for
Landlords therefore need to be vigilant and, according to Aviva, the signs to watch out for include:

•   Walls, ceilings and doors lined with plastic to allow plants to be grown in individual pots;
•   Windows with curtains or blinds drawn to obscure activity;
•   High-powered lighting installations – especially with meters bypassed;
•   Considerable condensation within the property;
•   A pungent smell or additional ducting and high-powered extractor fans fitted.

It is also worth checking to see if there is evidence of pump spray guns such as those normally used in domestic gardens, as criminals may be too sophisticated simply to attach garden hoses to the sink or basin.

Insurance protection
Some modern Landlord Insurance policies will automatically include cover for damage caused by cannabis farming. It is essential, however, that written employers’ references are obtained in respect of new tenants, as well as bank account details verified in advance of letting. A log of property inspections by the landlord or his or her agent is also required. Other conditions may apply and you should consult your insurance broker for full details.

Getting the right advice
It is important to seek independent professional advice before making any decision about your property owners’ property and liability insurance as well as your financial obligations. You should always ask your insurance advisers like Alan Boswell Insurance Brokers what experience they have of dealing with residential and/or commercial rental property insurance.

NOTHING CONTAINED IN THE ARTICLE SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE. PLEASE NOTE THAT THERE MAY BE VARIATIONS FOR THOSE LIVING IN OR LETTING PROPERTY LOCATED IN SCOTLAND AND NORTHERN IRELAND.

For more details visit: http://www.Alanboswell.com

Alan Boswell Insurance Brokers Limited
Harbour House
126 Thorpe Road
Norwich
Norfolk
NR1 1UL
01603 218000

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While most houses owned by buy-to-let landlords tend to be relatively conventional in construction, this is by no means always the case.