GROW-OP FIRE COVERAGE MAY BE EXEMPTED

The 30 insurance firms that provide residential fire coverage in B.C. are
considering changing their policies to reflect the growing number of
marijuana-related blazes.

Among the steps being considered is the elimination of coverage of fires
that result from illegal marijuana growing operations, said Dennis Prouse,
spokesperson for the Insurance Bureau of Canada. The bureau is a trade
association that represents general insurance companies in the province.

Such a change could force owners of rental properties to exercise more
caution when renting out their homes. If they don't and a fire occurs that
results from a hydroponic grow operation, they may not be eligible to claim
the damages. Some existing insurance policies already exclude coverage for
criminal acts, such as the presence of crystal methamphetamine labs.

The insurance companies are hoping that any change in policy will encourage
landlords to take extra precautions in dealing with prospective renters. By
scrutinizing the references of new tenants and regularly inspecting their
properties, that will help weed out some prospective marijuana growers.

As recently as a year ago, a policy change wasn't being considered as this
wasn't an issue, Prouse said.

But the explosion of fires often related to the faulty wiring installed by
marijuana growers inside rental homes has forced the industry to take a good
hard look at the issue.

"There are so many more of them now."

According to Richmond Fire-Rescue statistics, there have been 10 grow-op
fires in Richmond since 1998, causing $921,700 in damage. So far this year,
there have been five fires, resulting in nearly $460,000 damage.

Prouse emphasized that insurance firms aren't looking for excuses to deny
claims. Rather, the fear is that a rise in marijuana-related claims will
cost insurers more and that extra cost will be passed onto the general
public through higher premiums.

Prouse said some insurance firms have already written the marijuana
exclusion into their policies. Others have indicated they won't be making
any changes since they don't sell many policies to owners of rental suites.

Insurance brokers are putting together brochures to hand out to their
clients, indicating the warning signs landlords should be looking for.

Although the grow operations have largely been found in cheaper rental
accommodations, that's changing.

"It's now started to spread to nicer homes," Prouse said, referring to the
problems West Vancouver Police are currently encountering.

B.C. is the only province experiencing the marijuana growing problem, Prouse
said.