Colman Perkins News

How Marijuana Grow Houses Spark Costly Insurance Claims

Jon Colman of Colman Law Group invites you to learn about “The Growing Problem of Marijuana Grow Houses” at the 2020 Combined Claims Conference. The insurance industry event unfolds on March 3 and 4 in Garden Grove, Calif.

In this Emerging Trends session, Jon teams up with Special Agent Mike McKee, National Insurance Crime Bureau, and SIU Supervisor Josh Leininger, Mercury Insurance. Their presentation, Wed., March 3 at 11:30, exposes scams that are becoming more common and costly.

In one scenario, criminals purchase homes, even upscale properties, to outfit as industrial grow facilities. They often employ arson to gut the house, then fund the covert construction of ventilation, lighting, automation and security through a fraudulent homeowner fire claim.

When their operation is discovered, the criminal owner blames their renter for converting the home without their knowledge. The homeowner brazenly submits a vandalism claim and uses the money to repair the house for resale.

In 2018/19, a National Insurance Crime Bureau investigation in Southern California’s Orange County identified three questionable homeowner claims related to this problem. They averaged $250,000 per claim.

Event details
32nd Annual Combined Claims Conference
March 3-4, 2020
Hyatt Regency Orange County
Garden Grove, Calif.

Learn more
Jon Colman’s insurance fraud seminar topics
Colman Law Group practice areas