17 October 2019Insurance

Illegal cannabis farms account for high proportion of malicious damage claims in England and Wales

Insurance claims in England and Wales from landlords whose properties have been converted into illegal cannabis farms account for a third of the total value of all malicious damage claims received, reveals new research from business insurance provider Direct Line for Business.

Analysis of insurance claims data reveals there has been an increase in the number of malicious damage claims resulting from the cultivation of cannabis this year. One in every nine landlord claims related to malicious damage because a tenant had been using a landlord’s property for the illegal cultivation of cannabis.

The cultivation of cannabis can result in huge damage to a property, resulting from mould and water leakage from hydroponics and irrigation systems used. Claims also show criminals tampering with electricity supplies in a property, knocking through walls for ventilation and causing damage by installing fortifications to stop easy access.

Sarah Larkin, landlord product manager at Direct Line for Business, said: “Illegal cannabis farms pose a huge threat to the health and security of neighbourhoods across the country and are a major concern for landlords. Landlords can unwittingly become victim of unscrupulous drug dealers who abuse their properties and transform them into cannabis factories. Not only can these landlords find themselves involved in a police investigation, but they often have to contend with thousands of pounds worth of damage caused to their properties.”

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