Realtor · Jackson, TN · Member since 2019 · 2 posts · 0 votes
I'm always looking for ways to minimize my risk. I recently discovered that meth lab clean up isn't covered with our insurance. For those who don't know, cleaning up a meth lab can be very costly - and there's a right way to do it. Meth is cooked and used by every socio-economic demographic so screening is helpful, but may not be complete. Right now, I'm self-insuring the possibility of a meth lab clean up. I would rather have that cash invested and working to make more money.
What do you do to minimize risk for a meth lab clean up or other potential risks to your property?
An air filter is $4 each... and need to be changed every 3 months. I use that an excuse to go inside every single property every three months and the tenant likes knowing that they get a fresh air filter.
During those filter swaps you can find out if they are messy, cooking meth, growing pot, or damaging the property and get it taken care of before it turns into a multi thousand dollar repair.
An air filter is $4 each... and need to be changed every 3 months. I use that an excuse to go inside every single property every three months and the tenant likes knowing that they get a fresh air filter.
During those filter swaps you can find out if they are messy, cooking meth, growing pot, or damaging the property and get it taken care of before it turns into a multi thousand dollar repair.
I'm always looking for ways to minimize my risk. I recently discovered that meth lab clean up isn't covered with our insurance. For those who don't know, cleaning up a meth lab can be very costly - and there's a right way to do it. Meth is cooked and used by every socio-economic demographic so screening is helpful, but may not be complete. Right now, I'm self-insuring the possibility of a meth lab clean up. I would rather have that cash invested and working to make more money.
What do you do to minimize risk for a meth lab clean up or other potential risks to your property?
If you are using a homeowner's policy of any type, stop that immediately and get a landlord policy for your property. I use an independent agent for my personal and business coverage. I suggest you do the same. The landlord policy should have clear language that covers damages done by tenants engaged in illegal activity. You should also get rent payment coverage if you are sincere in you worry since it does take a good while to mitigate the damage. The only real use for self insurance is for collectables and antiques....unless they are actually appreciating. Most don't.
I provide an RV with all my rentals with the understanding that if they're going to cook that it must be in the desert.
I understand you want to be proactive here but that's very unlikely to happen if you screen the tenants properly. Honestly I don't know what specifically on a background check indicates they cook, besides jail. And if they have a record, I don't lease to them because of that risk. Luckily my rentals are in good areas that don't attract those types of applicants.
Focus on proper screening and that's the best insurance any landlord can buy!
I'm always looking for ways to minimize my risk. I recently discovered that meth lab clean up isn't covered with our insurance. For those who don't know, cleaning up a meth lab can be very costly - and there's a right way to do it. Meth is cooked and used by every socio-economic demographic so screening is helpful, but may not be complete. Right now, I'm self-insuring the possibility of a meth lab clean up. I would rather have that cash invested and working to make more money.
What do you do to minimize risk for a meth lab clean up or other potential risks to your property?
If you are using a homeowner's policy of any type, stop that immediately and get a landlord policy for your property. I use an independent agent for my personal and business coverage. I suggest you do the same. The landlord policy should have clear language that covers damages done by tenants engaged in illegal activity. You should also get rent payment coverage if you are sincere in you worry since it does take a good while to mitigate the damage. The only real use for self insurance is for collectables and antiques....unless they are actually appreciating. Most don't.
There is little to no chance to have coverage for it.
I have never had a meth lab claim, but have seen many insurance carrier change their policies over the last 10 years to react to the epidemic.
99.9% of the time the damage caused by meth production is a "pollutant" and Property policies will have a Total Pollution Exclusion.
Great info. Good to know that as long as I stick to the basics of properly screening tenants and doing regular checkups, I'm doing all I can. Thanks everybody!