Media release

'P' LAB CLAIMS INCREASING

3 December 2010

The Insurance Council is concerned at reports from its members that the number of claims for damage to property from 'P' lab activity is increasing.

Insurance council spokesman, Terry Jordan said, "Property losses from 'P' labs are becoming more significant and insurers are becoming increasingly concerned about the extent of these losses".

Property damage from 'P' labs is caused by the chemical contamination that results from the 'cook-up' process. Remedial work to clean the properties ranges from a property cleanup by a specialist cleaning company for light contamination, through to the full replacement of wall and ceiling linings, drapes and carpets, where 'P' lab activity has occurred on a regular basis.

In the worst cases, houses that are totally contaminated may need to be demolished. There have also been a number of instances of fire losses due to 'P' lab explosions.

Insurers provide cover for losses due to 'P' lab contamination, but the onus is on property owners to show that they have taken precautions with vetting tenants and carrying out regular inspections of their properties.

The Insurance Council congratulates the Police on the results being achieved in their fight against methamphetamine production, which has resulted in a large number of 'P' labs being 'busted'.

'P' users derive money for their habit from burglary, car theft and other types of crime, which results in further losses that increase the cost of insurance to all New Zealanders.

See more information under Consumer advice on this site

For further information, please contact:
Terry Jordan
Tel (04) 495 8002

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