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Meth Consumption: Frequently Asked Questions Broker information
1. General Meth information.............................................................................................................. 2
2. Measuring and testing meth contamination ................................................................................... 4
3. Policy Cover for Home Policies ..................................................................................................... 6
4. Policy Cover for Contents ........................................................................................................... 10
5. Policy Cover for Motor Policies ................................................................................................... 10
6. Policy Cover for Commercial Property Policies ........................................................................... 10
7. Meth Contamination Claims ........................................................................................................ 11
8. Information for Landlords ............................................................................................................ 13
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1. General Meth information
What is Meth? Methamphetamine (also known as Crystal, Ice, Meth or ‘P’) is an
addictive, illegal Class A drug. It is created or ‘cooked’ in makeshift
laboratories often called clandestine (clan) labs.
Meth, clan or ‘P’ labs can be set up almost anywhere; most
commonly in residential rental properties but also campgrounds,
rest areas, homes, motel rooms, cars, commercial vehicles, boats,
garages, storage sheds and vacant buildings. These clan labs can
be set up temporarily and moved relatively easily
Meth is taken orally, smoked, snorted, or dissolved in water or
alcohol and injected. A key ingredient is over-the-counter cold and
flu medicines which contain pseudoephedrine, which is a restricted
drug in New Zealand.
What makes meth dangerous?
The chemicals used to make meth are poisonous, explosive, toxic and extremely flammable and may cause explosions and house fires.
Meth contamination is the residue and by products left behind on surfaces after meth has been used, manufactured, distributed or stored within a property. This contamination occurs through manufacturing in meth labs or through use (smoking).
These contaminants can easily be absorbed into building materials, fixtures, fittings and household items. Anybody that comes into contact with meth contamination can ingest the meth through their skin, or by touching contaminated surfaces then transferring the chemicals to their mouth, nose, or eyes.
However, the presence of meth at low levels does not necessarily pose an identified health risk or constitute property damage.
Most NZI policies are designed to respond to covering the cost of decontaminating (when current contamination guidelines are exceeded) or replacing items only where a clear health risk is identified. We are guided by most recent health information.
Why it’s a problem
The use of meth is a widespread social problem in New Zealand and around the world. Meth is used by people from all backgrounds, ages and circumstances but because of its illegal nature, it can be hard to quantify the extent of the issue.
According to a recent online article, in the 2016 Global Drug Survey (GDS) 17.8 per cent of the 7,633 New Zealanders who took the survey reported having used some kind of amphetamine as recreational drug in their lifetime, while 5.3 per cent reported to
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having used the drug in the past 12 months (Note: the GDS is not a nationally representative sample though as participants are self-selecting).
However the New Zealand Health Survey carried out in 2013 found 25,700 Kiwis used amphetamine-type drugs – 1,400 were dependant on the drug, while 24,300 were casual users. Meanwhile, official figures put New Zealand's usage rate at 0.9 per cent of the adult population.
A statement released from Massey University said casual meth use in New Zealand continues to grow as an increase in global supply meant ‘p’ (meth) was easier and cheaper to source.
What is NZI doing to educate and develop the supporting industry around this problem?
It is important that everyone – insurers, brokers and customers - take responsibility for tackling the growing social issue of meth addiction, and the subsequent costs of damage. NZI has an important role to play in helping protect our customers from loss as a result of meth contamination. The risks and costs of owning a property have changed as a result of this social issue and landlords, homeowners and insurers all need to play their part in responding to this wider problem.
At NZI we want to make New Zealand a safer place. We now recognise Home claims where contamination has occurred as a result of use, not just manufacture.
Our meth cover is not limited to rental properties; rather it extends to all home occupancies, including owner-occupied homes and holiday houses, as these can be affected too.
While meth contamination does happen in rental properties, meth by boarders, flatmates, or from clan labs set up in holiday homes, is a growing issue as well and this is why we are offering a wider cover to protect our customers.
We’ve put together a handy booklet for landlords about meth – available on our website here.
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2. Measuring and testing meth contamination
How is meth contamination damage measured?
Last year the Institute of Environment Science and Research (ESR) was commissioned to produce a recommendation on the appropriate levels for meth clean-up. These were developed by reviewing health-based studies and taking a very conservative approach.
In October 2016 they recommended the following three-tier levels:
Standard
Measure - micrograms of methamphetamine per 100 centimetres squared (μg/100cm²)
Methamphetamine standard (former labs): 0.50
Methamphetamine standard (non-lab houses, if carpeting removed):
2.0
Methamphetamine standard (non-lab houses, if carpeting not removed):
1.5
This was accepted by the Ministry of Health and they publicly advised in late October 2016 that these proposed three levels can be used as a guide until official new standards are developed by Standards New Zealand later this year. The new NZ Standard, once developed, will supersede the Ministry's existing guidelines.
As a result, we will be aligning ourselves with this recommendation and adopting a methamphetamine contamination level of 0.50 for meth labs and 1.50 for other source of contamination, effective for all claims notified from 21 February 2017. Note that we are adopting a straight 1.5 level for any non-lab houses regardless of carpets.
We will continue to use the previous 0.50 standard for any claims already lodged before 21 February 2017 which means any claims already underway will not be affected by this change.
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How is meth contamination damage identified?
Indicator test kits are often used to screen for the presence of meth. Where meth is detected, an independent testing company will need to gather test samples to identify the individual levels of contamination in each area of the property.
A laboratory analyses the test samples and provides their report on each test sample. Any results above the contamination standard will mean remediation work is required.
To make a meth related claim, customers are required to provide test results from an appropriate lab that shows the contamination exceeds the current contamination guidelines/standards.
To establish that meth contamination has policy coverage, you are required to provide results based on an appropriate lab test that shows that contamination exceeds the standard. If the test is positive, the costs of the test are covered and included as part of the policy sub-limit. The cost of producing any positive test is covered and is included as part of the policy sub-limit.
What happens if meth contamination is identified but it is below the limits?
If the contamination levels of a property are tested and are found to be below the guidelines/standards, the experts will most likely conclude that the property is safe and no remediation or decontamination work is necessary.
This may mean that there are some levels of contamination present, but it doesn’t pose a health risk and as such, will not be remediated. The cost of testing in these cases won’t be insured.
If a claim is accepted, to what level do NZI decontaminate?
Expert advice is sought to determine the most appropriate remediation programme needed to reduce contamination. NZI will cover the cost of remediating contamination to below the NZ Standard (or until this is available the ESR recommended level) up to the policy sub-limit.
This means that the remediation work undertaken may not remove every trace of the meth, but will reduce it to a level that is considered safe.
What are the estimated decontamination and testing costs for a home?
There is a high cost to meth testing and decontamination. Costs for detailed testing can range from $3,000 - $10,000, with decontamination costs typically ranging from $2,000 - $50,000.
However, low-level contamination may pose no risk to health and not require any remediation action, while high-level contamination could cost many thousands of dollars to remediate .
For context, IAG’s claims costs for meth contamination are estimated to be about $18 million year, with an average decontamination cost of currently about $20,000 - $25,000 per claim.
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All customers will have to pay an excess associated with meth contamination. NZI has capped the amount of cover for meth contamination to $30,000 (minus the $2,500 excess) which it will pay towards the cost of testing and clean up of the home Claims costs have increased dramatically in relation to meth contamination, and as such, a significant excess needs to be applied.
The risks and costs of owning a tenanted property have changed as a result of the meth issue, and everyone needs to play their part in responding to this wider problem. No matter how well a landlord manages a tenancy there is still a risk of a meth related claim. However, the chances of having a claim are significantly influenced by how well tenants are vetted and managed.
Managing and vetting tenants and being aware of the signs of meth use and the indications of a meth lab will help reduce the risk of customers being faced with costs and potentially uninsured losses associated with meth issues (for example, decontamination costs that exceed the policy sub-limit).
3. Policy Cover for Home Policies
What is included in the new cover?
The cover relates to when the ‘presence’ of meth is discovered and it exceeds current contamination guidelines/standards. This extends our previous manufacture, distribution and storage-related cover to now include meth use as well.
Cover has been simplified and all cover for meth will be dealt with under one Methamphetamine Cover Extension. It includes contamination that may have happened in a previous period of cover provided the customer was insured with NZI, or any other IAG brand at the time of the contamination.
Our cover is not limited to rental properties but extends to all home occupancies, including owner occupied and holiday homes. Please refer to the policy wording for specific details on limitations that apply to some types of occupancies.
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What a customer is covered for
Meth contamination from use is now insured. This is now by far
the most common cause of meth contamination
Reimbursement of comprehensive testing that establishes contamination above the specified guidelines/standards
Up to $30,000 of cover subject to a minimum excess of $2,500 (unless a higher excess applies e.g. voluntary excess or imposed excess).
If their policy has cover for alternative accommodation (or ‘loss of rent’ where the home is a rental) this cover also applies for a meth contamination claim
Cover is not restricted to only tenanted properties, owner/occupied and holidays home are also covered. Cover is available for short-term rentals (for manufacture, distribution and storage, but not use) and different conditions and limitations apply. This is because the risk of contamination by use increases significantly due to the number of guests and lack of vetting process.
Where covered by a customer’s home or contents policy, landlords’ fixtures and fittings or landlords contents cover is included as part of the methamphetamine cover sub-limit.
Please read the specific policy wording for full details.
Will there be any change to premiums?
Additional premium applies to all Home policies to ensure sustainable pricing for our products and to reflect the increasing claims cost associated with providing meth cover.
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Some other key points to note
There’s no cover for contamination that involves a customer or any member of their family. It’s important that the policy holder communicates this to their family in case they inadvertently allow meth contamination to occur (for example, through organising a party at home.) This applies even if the home is owned by a trust, or if they are the shareholder or owner of a company that owns the home.
Customers must meet the landlord obligations under their policy for a claim to be accepted. Meeting these obligations and managing a rental property well are the best way to protect against the risk of contamination
There’s no cover for meth contamination resulting from meth use for homes with short period (less than 90 days) tenancies or occupancies, such as those available on property sharing websites, or renting out a holiday home. We don’t offer meth consumption cover in these situations as they represent a significantly higher risk of loss due to the increased number of people accessing the property and the inability of owners to properly vet those using the property. Contamination from manufacturing, storage and distribution is still covered.
Home cover only applies when the customer has been continuously insured with NZI (or IAG) and contamination first occurred during this time. If contamination existed prior to cover being provided, no contamination cover is provided (unless previously agreed in writing).
The home policy cover pays to decontaminate to below the currently recognised guidelines/standards (up to the sub-limit). That means that some level of contamination may continue to exist, but at a level that is deemed safe.
Any existing cover for meth labs is being replaced with our new contamination cover as our wordings are updated. Any existing policy limits for the manufacture, storage and distribution of meth will be updated to align with the new limits.
There is also no cover for contents damaged as a result of meth contamination; contents policies are being updated to exclude contamination cover.
The exception to this is Landlord’s contents. This will be covered under the house sub-limit, even if a separate contents policy has been issued for the contents policy. This is intended so that only one sub-limit applies to any meth related claim.
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What about previous contamination of a house?
NZI is only offering cover for contamination that first occurs and is discovered while the customer has their home insured through NZI or any of the IAG brands. This is to limit our exposure to previous meth contamination that had not been identified or remediated to the recommended levels.
As a prudent landlord we’re recommending customers do a baseline test for meth at the beginning and end of a tenancy and when changing insurers. While it’s not a requirement of the policy, landlords will be required to establish when contamination has occurred should a claim be made, and regular testing will help provide this.
In some cases, there will be a small level of contamination that remained after a previous contamination event has been cleaned up. This will need to be identified at the time the policy is taken out with NZI and a decision made about providing meth cover or not. Generally, we only want to provide cover for meth contamination that first happened whilst the property was insured with NZI, except for a small amount of contamination remaining where previously cleaned.
Can the insured choose their level of cover?
Can you choose not to have the meth extension?
No, we want coverage to be as broad as possible for our customers.
Can you choose just to have lab cover?
No, the challenge in establishing what is contamination by use or from a lab adds complexity to claims and leads to complications and potentially poor experience at claim time. It might be difficult for a customer to prove that a loss was due to a meth lab – not from use - and so are unable to succeed with a claim.
Why is there such a large excess applying to this cover?
It is important that everyone takes responsibility for tackling the growing social issue of meth addiction, and the subsequent costs of damage.
At NZI we believe that it is the responsibility of the landlord to ensure that tenants are vetted and properties managed correctly to reduce the risk of meth contamination and the increased excess reinforces this.
In addition, we want to offer the broadest coverage as possible for our customers, but in order to sustain the rising costs associated with these types of claims, a higher excess has been applied.
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Can the excess be reduced or waived?
No, the $2,500 minimum excess for meth contamination is standard in all cases across this benefit and cannot be varied or waived. Higher excesses may apply (e.g. a higher voluntary excess).
4. Policy Cover for Contents
Is there any change to cover for content?
There is no cover for contents damaged as a result of meth contamination; contents policies are being updated to exclude contamination cover.
The exception to this is Landlord’s contents. This will be covered under the house sub-limit, even if a separate contents policy has been issued for the contents policy. This is intended so that only one sub-limit applies to any meth related claim.
5. Policy Cover for Motor Policies
Is there any change to cover for motor vehicles?
We’re currently working through what, if any, changes need to be made to our Motor policies in regards to meth contamination.
We’ll be in touch with you again should there be any future changes
6. Policy Cover for Commercial Property Policies
What are the changes to commercial property policies for meth contamination?
We’re currently working through any changes that may be necessary to our Commercial Property policies in regards to meth contamination.
The initial change will be an endorsement for our current body corporate policy wording to clarify the scope of coverage and the applicable sub-limits for contamination coverage. The coverage will be similar to that offered to our Home customers, but it may reflect differences in insuring a commercial, as opposed to insuring a residential, property risk.
Changes to our other Commercial Property policies will be reviewed and made in conjunction with our regular policy wording reviews. An interim meth contamination endorsement is not currently being considered.
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Further updates will be provided to you for both body corps and other commercial policies as these are finalised and prior to amending our current terms and conditions.
7. Meth Contamination Claims
How are you managing meth contamination claims for home policies?
A ‘difference in conditions’ approach has been adopted to manage Home claims relating to meth contamination through use. This will be in place until such time as our policy wordings are updated to reflect these changes.
The difference in conditions approach gives customers the benefit of the wider cover that our new wordings will provide in the interim, provided they have met their landlord’s obligations under their existing cover.
Claims for contamination caused by manufacture, distribution or storage of meth will continue to be covered by our current Home policies, up to the insured’s sub-limit and provided the existing landlord’s obligations in the policy have been met.
Who is involved in resolving meth contamination claims?
Our claims teams work closely with our Loss Adjusters when determining the best claim outcome. They will work with the customer to engage the relevant testing and decontamination service providers who will draft an appropriate response and plan of action.
Where the claim is accepted NZI will normally then settle the quoted value of the remediation (up to the policy sub-limit less excess) to allow customers to manage the remediation process. Any cover for ‘loss of rents’ or ‘alternative accommodation’ will be paid in addition to the meth contamination sub-limit if a claim for meth contamination is accepted under the policy.
What’s involved if a house or rental needs to be decontaminated?
Expert advice is sought to determine the most appropriate remediation programme needed to reduce the contamination below the current guidelines/standards.
First the customer must organise a comprehensive test with a professional meth testing service, who will provide us with the results in a detailed report. If the claim is accepted, we will cover the cost of remediating contamination to below the relevant guidelines/standards (up to the policy sub-limit).
This means that the remediation work undertaken may not remove
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every trace of the meth, but will reduce it to a level that is considered safe.
In order to remain covered under NZI’s policies, a final post-decontamination clearance certificate is required to establish that the decontamination was successful and the results are below the applicable standard.
Our home policy cover pays the cost of post-remediation testing to confirm that decontamination has been successful. This is paid separately by NZI in addition to the policy sub-limit and does not draw on the customer’s available cover.
Who are the accredited sampling and testing operators in New Zealand?
We’re putting together a panel of NZI’s preferred suppliers for meth testing. This is an involved process as each supplier needs to be thoroughly evaluated. Once the panel is confirmed it will be available on our website.
While this is being finalised we can provide details for some recommended testing suppliers we currently have good working relationships with and would be confident referring customers to at this stage:
Company Contact details
Meth Solutions Ltd
P: 0800638452
W: methsolutions.co.nz
Precise Consulting & Laboratory Ltd
P: 0800002712
W: preciseconsulting.co.nz
Drug Testing Services
P: 09 9039487
W: drugtestingservices.co.nz
Forensic & Industrial Science Ltd
P: 09 8185689
W: forensicscience.co.nz
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Dowdell & Associates Ltd
P: 09 5260246
W: dowdellassociates.co.nz
Who pays for testing?
When potential meth contamination is identified by a customer, they have a policy requirement to show that the level of meth contamination exceeds the level that constitutes a valid claim.
Your clients are responsible for meeting the initial testing costs. These costs will be reimbursed for an accepted claim (within the sub-limit) provided the test identifies contamination above the guidelines/standards.
Post-remediation testing will be paid for by NZI. These costs are outside of the sub-limit for the policy for an accepted claim.
8. Information for Landlords To help our customers, particularly those who are landlords with rental properties, we’ve put together a ‘Your guide to Methamphetamine contamination’ booklet . It covers off general information about meth, and details the obligations landlords must take to protect their property. It’s really important your landlord clients are made aware of their revised obligations, as they are a policy obligation and are the best line of defence against having meth contamination within their property.
Please pass it on to any customers who might benefit from having a read.
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What are landlord’s obligations under the new property cover?
Landlord obligations for vetting tenants and managing the tenancy will continue to apply, and will be given increased consideration with underwriting and at claims time.
The requirements of landlords will become more stringent as policies renew with the cover changes.
Please note: We recognise that the landlord obligations C, F, and G (i) listed below are not applicable for homes let as part of an employment agreement. We also do not apply these obligations to boarder/flatmates in owner occupied homes, but recommend homeowners vet prospective potential occupiers in the same way to minimise the risk of meth contamination losses.
NZI’s landlord obligations are outlined below, and to provide further clarity on our approach notes have been included to support these:
Requirements
You, or the person who manages the tenancy on your behalf, must:
Rationale/ Further notes
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(a) exercise reasonable care in the selection of tenant(s) by at least obtaining satisfactory identification and written or verbal references for each adult tenant and when a reasonable landlord would consider it appropriate also check their credit and Tenancy Tribunal history, and
It’s important to note that adult tenants include any person over 18 living in the home, including any adult children living with their parents. This is to ensure every adult is assessed for their eligibility as a tenant for the property.
If the property is managed by a property manager and the new tenant is one of their existing long time good tenants (or the long time tenant is moving between the landlord’s own rental properties) then there is usually an established record here of their ability to pay the rent consistently and treat the property well, so in these circumstances the need for a Credit or Tenancy Tribunal history check would be considered unnecessary.
However if the checks are not done and basic enquiries would have clearly shown the tenants inability to pay rent or a history of defaulting or causing damage to a property, then any claim would be looked at very closely.
(b) keep written records of the pre-tenancy checks conducted for each adult tenant, and provide to us a copy of these if we request it, and
As per above.
This is standard practice as a prudent landlord and is also recommended by Tenancy Services.
(c) collect a total of 3 weeks’ rent in any combination of rent in advance and bond that will be registered with Tenancy Services, and
This is standard practice as a prudent landlord and is also recommended by Tenancy Services. It also offers some financial recourse should there be damage caused to the home.
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(d) complete an internal and external inspection of the home at a minimum of 3 monthly intervals and the relevant residential dwelling upon every change of tenant(s), and
This is standard practice as a prudent landlord and is also recommended by Tenancy Services. Regular inspections help to identify any of the warning signs of meth use or manufacture (see below).
(e) keep photographs and a written record of the outcome of each inspection, and provide to us a copy of these if we request it, and
See our detailed response below as we understand this is an area of concern for some brokers.
(f) monitor rents on a weekly basis with written notification being sent to the tenant(s) whenever rent is 14 days in arrears, together with a personal visit to determine if the tenant(s) remain in residence, and
This is standard practice as a prudent landlord and is also recommended by Tenancy Services. It also makes good financial sense to ensure rent does not fall too far into arrears.
(g) make application to the Tenancy Tribunal for vacant possession in accordance with the provisions of the Residential Tenancies Act 1986 if:
i. the rent is 21 days in arrears, or
ii. you become aware of any illegal activity by the occupant(s) at the home, or
iii. intentional damage to the home is caused by one of its occupant(s).
This is standard practice as a prudent landlord and is also recommended by Tenancy Services
Why do photographs need to be included? (Section e of the Landlord Obligations)
The purpose of the photographs is to provide photographic documentation of the general condition of the interior of the property, and capture details of any specific areas of concern that could relate to meth contamination.
This is already common practice for many landlords, and Tenancy
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Services recommend taking photos as part of the inspection process in case any matters are disputed at a later date. They advise landlords to be careful not to include any tenants’ belongings in the photos during an inspection if this is possible. It’s about striking a balance between respecting a tenant’s privacy and being able to conduct a thorough inspection.
Taking numerous photos (or detailed video) of various parts within each room prior to a new tenant moving in creates an excellent benchmark to support the condition of the property and fixtures and fittings present. This avoids the inability to prove the absence of them in the event of the tenant removing/destroying them (and this damage may or may not be covered by insurance – if not then the Tenancy Tribunal has the ability to award compensation to the landlord).
It’s recommended photos are taken and kept of the following:
The condition of the grounds and outbuildings – this reflects maintenance upkeep and absence of surplus rubbish. Excessive rubbish may be a sign of meth activities. General build up can also attract rodents which can cause damage including fires to the home.
The condition of floors and floor coverings – this helps track general
wear and tear as opposed to new specific damage (which may or may not be covered by insurance). Actually lifting rugs/mats to check/record the condition below makes good sense.
The condition of walls, joinery and other fitting (doors, lighting, blinds, towel rails etc) – again this helps track general wear and tear as opposed to new specific damage (which may or may not be covered by insurance).
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Any landlord supplied appliances and other contents.
Closer inspection in rooms with plumbing may also help identify leaks early e.g. sign of mould or paint bubbling on wall or bulge/spongy area of the floor the tenant hasn’t noticed in their everyday use.
The photos need to be labelled or very clear on what is being recorded, its specific location and in some case dimensions may need to be shown (e.g. place pen or ruler beside stain on carpet to show its size).
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What if there is no property damage to photograph?
Our expectation is that photos are taken to document the general condition of the home on inspection, not just damage. They also confirm the inspection took place due to the metadata captured on digital photos.
Do landlords have to do the extra identification and reference checks for a tenant already in the property?
The new landlord’s obligations apply to a policy at renewal, so an existing tenant does not have to be treated like a new tenancy. If someone new moves in as part of the existing tenancy however, they will need to treated like a new tenant and the appropriate checks undertaken.
We do expect landlords to have complied with the obligations that existed under their policy with us when the tenancy began.
When do landlords need to meet the new obligations if the tenancy started before the new meth cover?
For tenancies that started before the new meth cover was offered - provided the landlord has met their policy obligations in place at the start of the tenancy, we will consider this as having met the requirements of the policy.
However, once the policy has renewed on to a new wording version that includes the revised meth cover, the new obligations will need to be met from the renewal of the policy.
If a new tenancy starts after the policy has renewed on to a new wording version that includes the revised meth cover, all landlord obligations will need to be met.
Are landlords covered for liability?
Liability cover is also included for landlords, subject to a previously clear meth test. This is to provide cover where, for example, a tenant claims for cross-contamination of their property as even where no liability can be shown, legal defence costs may still be incurred.
It’s important to note that while a meth test at the start and end of each tenancy is recommended but is not a requirement of the policy, having a clear test is a requirement for liability cover.
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Landlords can chose to undertake the test immediately or with the change of tenant, but no liability cover is in place until a clear test has been received.
Other impacts/ cost to all property owners
Meth contamination could have implications if a customer wants to sell their property. Where the Police have had an involvement in the property they are obliged to notify the local council, who may issue a ‘cleansing order’ requiring the property to be remediated to a safe level. The local council will remove the cleansing order after being satisfied remediation has been successful. The status of the cleansing order will be applied to the Land Information Memorandum (LIM) for the property, potentially creating a permanent record.
Failure to remediate a contaminated house may affect future insurance of the property and if the information has been placed on the LIM report, then that may affect the house value or the ability to sell the property in the future.
Future insurance for homes insured by a customer may be affected if previous claims history indicates that the landlord obligations are not being adequately met.
To keep meth cover, customers will need to provide a post-decontamination clearance certificate within a reasonable timeframe (normally 6-8 weeks after the claim has been paid).
Ongoing insurance will only cover any subsequent new damage from meth contamination that has occurred as a separate event
What can the insured do to reduce / prevent Meth contamination to their investment property?
It’s important to recognise landlord obligations are stricter now than in some of our previous policies. This is to ensure that all possible precautions are being taken to avoid having to make a meth-related claim. It also gives customers the reassurance that should they need to make a claim, they’ll have all the necessary records, documents and processes in place to proceed quickly if the claim is accepted. The landlord’s obligations relating to managing a tenancy continue to apply and will form an integral part of evaluating a claim and future underwriting. The landlord and the person managing the tenancy on the owners’ behalf must comply with the landlord’s obligations in order for the claim to be considered. If the landlord obligations are not met them it puts future cover as well as claims at risk.
Increased vigilance in selecting and monitoring tenants is an area where landlord’s can best protect themselves from the difficulties these losses cause.
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Landlords or property managers should be regularly checking for any signs of meth use or manufacture during and between tenancies. If the property is being managed through a professional letting agency landlords will need to discuss with their agent the requirements for the property’s insurance cover – especially landlord’s obligations, what procedures they have in place if they suspect meth contamination, and the steps taken to test the property.
Warning signs that landlords and or property managers should look for during their three-monthly or final inspections of a property include:
Ammonia or solvent smells
Windows covered in plastic or tin foil
Chemical containers stored or stock piled
Glass equipment and cookware that is stained
Plastic or glass containers fitted with glass or rubber tubing
The presence of numerous cold tablet packages
A disproportionate amount of rubbish for the number of people living in the home
Portable gas tanks or other cylinders not normally seen or used in the area
Chemical stains around household kitchen sinks, laundry, bathroom or stormwater drains
Yellow/ brown/ pink staining of interior floor, wall, ceiling and appliance surfaces.
Extra or over-the-top security systems or other devices
Dead or dying vegetation/ lawns in outdoor areas
Increased activity, especially at night
Unusual structures, such as a lean-to on the back of the house and use of tarpaulins
Renters insisting on paying their rent in cash.
Note: there may be other signs to be considered, but this list gives you some ideas.
Having a friendly chat with the neighbours can help find discover any unusual activity on the property when the landlord isn’t around.
More detailed information is available in the ‘Your guide to Methamphetamine contamination’ booklet.
