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Our client, who is insured under a businessowners form, was in the process of selling an apartment building when an inspection revealed four units had been modified by the tenants in order to cultivate marijuana. They painted over window panes; installed false walls; made openings in the ceiling, floors, walls, and doors to install irrigation and ventilation systems; and removed carpet and installed roofing paper on the floor. The tenants’ whereabouts are unknown.

The insured did not authorize the alterations and was not aware they had taken place. The insured submitted a claim for the cost to repair the units.

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