A long-term guest turned my rental into a meth lab. The police raided it, but now the county health department has posted a “Do Not Enter” sign. The remediation estimate is $35,000 to strip the drywall and HVAC. My insurance denied the claim citing the “Pollution Exclusion” and “Criminal Acts.”
Key Takeaways
- The “Pollution” Exclusion: Meth residue is a chemical pollutant. Almost all standard policies exclude pollution cleanup.
- “Criminal Acts” Exclusion: Insurance excludes damages resulting from criminal acts. While you didn’t commit the crime, some insurers argue the damage arose from illegal activity on the premises.
- Vandalism Limits: You might try to claim it as “Vandalism,” but the cap is often too low to cover hazardous material cleanup.
- Loss of Income: You cannot rent the unit until the Health Department certifies it clean. This can take 6 months.
The “Why” (The Trap)
The trap is “Contamination vs. Damage.”
If a guest punches a hole in the wall, that’s physical damage. If a guest smokes/cooks meth, the wall looks fine but is toxic. Insurers deny “Contamination” claims because there is no “direct physical loss” visible to the eye, or they default to the Pollution exclusion.
The Investigation: I Called Them
- Proper Insurance: I asked the hard question: “Meth lab cleanup?” They cover it as “Vandalism/Malicious Mischief” and do not apply the pollution exclusion to guest-caused damage in the same way standard carriers do. They cover the income loss too.
- State Farm: “We exclude pollution. We might pay for the broken door from the police raid, but not the chemical cleanup.”
- Bio-Clean Companies: I called a cleanup crew. They said, “We see this all the time. Standard homeowners insurance pays $0. You need a landlord policy with a specific Vandalism rider, but even then, it’s a fight.”
Comparison Table: Drug Lab Cleanup
| Feature | Proper / Specialized | Standard Landlord | Airbnb AirCover |
| Chemical Cleanup | YES (Vandalism) | NO (Pollution) | YES (Specialized Cleaning) |
| Loss of Income | YES | NO | Limited |
| Testing/Certification | YES | NO | Varies |
[IMAGE: Photo of a ‘Hazmat’ remediation team in suits inside a kitchen, with a ‘DANGER: CONTAMINATED’ sticker on the door]
Step-by-Step Action Plan
- Screen Locals Aggressively: Meth labs are often set up by locals, not tourists. Be wary of local bookings with few reviews.
- Regular Inspections: If a guest books for 28+ days, require a weekly cleaning or inspection. Labs are messy; you will smell it or see the covered windows.
- Get the “Vandalism” Rider: If you have a standard landlord policy, ensure “Vandalism” is included (it’s often optional).
- AirCover Claim: File immediately under “Deep Cleaning” but push for “Hazardous Material Removal.” AirCover is actually your best bet here if you don’t have commercial insurance.
FAQ
Does the smell of weed count?
No. Weed smell is a nuisance, not a hazmat situation. Ozone machines fix weed. They do not fix meth.
Will the police pay for the broken door?
No. Sovereign immunity protects them. You pay for the door they battered down.
Do I have to disclose this to future buyers?
Yes. In most states, “Meth Lab” history is a mandatory real estate disclosure forever. This tanks your property value.