Insurance Coverage for Methamphetamine

Methamphetamine use has become a significant problem in Colorado. Worse yet, once addicted the re-addiction rate is incredibly high. Chemical contamination occurs as a result of the manufacturing process for methamphetamine. This can render a house uninhabitable and the belongings unusable.

The cost of clean up for methamphetamine contamination is incredibly high. It is regulated by the government and requires costly measures be undertaken before the house is used again. Cost of clean up may range between $15,000 and $40,000.

Our client asserted a homeowners claim when she discovered that another occupant of the house had been secretly manufacturing methamphetamine. The cost of cleanup exceeded $30,000. The cost of living elsewhere increased the misery. State Farm refused to pay the claim claiming that "contamination" was not covered. In the State of Washington, the Appellate Courts held that there was coverage even though claims for contamination were excluded. This argument has not been made to Colorado's Appellate Courts . . . yet.

We believe that insurance companies will pay for the cost of cleaning contaminants such as mud and other chemicals following the flood. We believe insurers will pay for contamination from chemicals and smokes following a fire. We believe insurers should pay for contamination following a covered loss such as vandalism and malicious mischief. Certainly, the manufacturing use of methamphetamine is vandalism and malicious mischief. The resulting contamination should be covered.

Back to Articles