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Grow ops present more than a fire hazard: Fraud Forum


September 28, 2004   by Canadian Underwriter


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Issues insurers may face when dealing with marijuana grow operations extend beyond the threat of fire, delegates at the Annual Toronto Fraud Forum learned Tuesday.
Staff Sgt. Marc Pineault of the Ottawa Police Services says another significant problem is mold growth in grow houses.
Pineault says the grow op issue in Ontario has escalated significantly over the last four years. In Ottawa, for example, two grow house were uncovered in 2000, but so far in 2004, 58 operations have been uncovered. In many cases, children are residing in these homes, making mold and other air quality issues all the more problematic.
Grow houses are increasingly being found in residential neighborhoods, and Pineault notes that the issue is not isolated to large urban centers or to any province in particular.
Illegal growers take over these homes, stealing hydro, sometimes cutting holes into the structure for wiring or other devices, and often degrading the structural integrity of buildings. In fact, Pineault says, nine times out of ten, building inspectors brought in after a grow house raid find the home not fit for people to live in.
Pineault says he supports moves by insurers to make it clear they will not cover claims for illegal grow ops this, he says, sends a message to landlords that they are responsible to make sure properties are not being used to house grow ops. On the other end of the spectrum, he reports, is the unfortunate expectation that Ontario courts may remove any responsibility from building owners whose tenants steal hydro for grow ops.
Pineault says the key now is for law enforcement to work with private industry insurers, hydro providers, realtors and others with a vested interest in stopping grow ops to advance the understanding that these operations are hazardous and often tied to other criminal activity, and to put resources toward shutting them down.


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