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Marijuana grow operations may lead to higher insurance rates


June 20, 2005   by Canadian Underwriter


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A recent fire in Richmond, BC is likely a result of a marijuana grow-op. The incident sets precedence for the new pot grow-op bylaw, set to take effect July 1, requiring landlords to check their premises for grow-ops every three months. It also heightens the issues surrounding a recent Nova Scotia-based symposium hosted by policing and victim services division of the Department of Justice.
Representatives of the RCMP in New Brunswick, the GrowBusters community project in Vancouver and the Safer Communities initiative in Manitoba attended the symposium to discuss ways of shutting down illegal marijuana grow operations, which are costly to Canadians.
“Grow ops also lead to higher electricity costs due to lost utility revenue, depreciated property values and higher insurance rates,” Justice Minister Michael Baker says.
One major concern surrounding grow operations is the increased risk of fire, which is present as growers often steal electricity (to camouflage operation from police) by doctoring electrical units with home-made bypasses, thus increasing the risk of property damage through electrical fire in a highly flammable environment.
Regarding the grow-op fire, Coun. Evelina Halsey-Brandt says property damage, like the one recently incurred, may evoke increased awareness regarding the risk of property damage that grow-op’s may cause.


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