POT GROWERS BURDEN TO INSURANCE COMPANIES

Rewiring Houses Creates Possibility Of Explosions

Illegal marijuana-growing operations in the GTA cost insurance
companies millions of dollars. Bob Whitman, director of the Insurance
Bureau of Canada's crime ring investigative unit, said Tuesday there
are hundreds of marijuana grow houses in Toronto and the surrounding
regions and "there's a potential for 10,000 in the entire province".

"It's been estimated in the conservative area $50,000 per grow house
is paid in claims by insurance companies," Mr. Whitman said. "You do
the math."

In York Region alone, police have raided close to 200 pot-growing
operations this year.

Marijuana growers commonly rent or buy houses in suburban
neighbourhoods and rewire them to accommodate the large amounts of
electrical equipment needed. In addition, extensive damage is done to
walls, floors and ceilings to run ventilation ducts from basements to
roofs.

"They are creating fire hazards for future buyers," Mr. Whitman
said.

"They are frying the wires. Once they are compromised, three or four
years down the road, you have fire in the walls. The losses are
running in the millions."

Not only are the operations costing insurance companies money, they
are also causing injuries and deaths, he said.

He pointed out Markham Hydro has been shutting off power to houses
suspected of stealing hydro by bypassing meters, a common practice
among grow house operators.

"Some have been so bad, there's literally a fear of houses exploding,"
Mr. Whitman said. "People living on each side and behind these houses
are in danger."

He said so many houses have been identified that, despite stepped-up
policing, including two nationwide Operation Greensweep initiatives
earlier this year, "police are losing the battle".