IAG New Zealand says cases of contamination as a result of methamphetamine being produced in private homes are rising fast, and confusion over cover is causing problems for landlords.

Meth is commonly referred to in Australia as “ice”. Contamination can occur if the drug is produced at a property, or if residents are users, leading to clean-up costs of up to $NZ50,000 ($45,864) per property.

IAG says it now receives an average of 60 claims a month, totalling $NZ14 million ($12.84 million) in the past year.

The insurer has released a guide on meth contamination and its insurance consequences, and has changed policy wordings and levels of cover to ensure greater clarity.

IAG New Zealand spokesman Craig Dowling says it is a highly complex issue.

“Because meth contamination of homes is a relatively new phenomenon, different policy wordings can lead to different outcomes at claims time and that is generally not a good experience for anyone,” he said.

“As a result we are aligning terms across our brands over time and seeking to communicate clearly what expectations customers can have of us, and what we have of them as homeowners.

“We are also sharing advice and tips for people unsure of what to do in different circumstances.”

IAG says an unregulated industry has grown up around testing for contamination and subsequent cleaning of properties, which contributes to misinformation.

“We are in the process of establishing a list of preferred partners that can provide our customers and ourselves confidence in the work they do.”