As of October 17, 2018, it is allowed to ripen up to 4 cannabis plants per home for individual use in Canada. If you are planning to grow marijuana in your home in accordance with the law, it is very important that you consider in advance the consequences that a new horticultural hobby may carry with you home insurance.
That goes for having exclusive language written directly into your home insurance coverage that excludes losses related to controlled substances, and sometimes losses primarily related to cannabis expansion. Since expanding marijuana is legal in Canada, homeowners and insurance providers are mapping out new areas. As insurance providers get a handle on understanding the included dangers of expanding marijuana in your home, plans may differ in general from insurance company to insurance company.
The Dangers of Expanding Marijuana at Home
While you might think of growing a pair of potted plants like growing any other common houseplant, some insurance providers don’t see it this way, at least not yet. From an insurance point of view, expanding marijuana results in certain dangers consisting of:
- Power cut triggered by expansion lamp
- Target robbery
- Sprinkle damage and mold and mildew
- Individual responsibility if a visitor is injured due to intoxication with marijuana grown at the facility
How Expanding Cannabis Can Cancel Your Insurance
The current situation between property owners and insurance providers that was decided in February 2019, is one example of cannabis growth leading to home insurance authorities being cancelled. The Supreme Court of British Columbia ruled for an insurance provider to cancel the insurance coverage of a property owner in Chilliwack that had a contract between its warehouses.
While the homeowner had the outbuilding included in his insurance coverage, he ignored his insurance provider that the building covered 310 cannabis plants. Even though the homeowner has a valid expansion license, the insurance company is not aware of the dangers posed by growth operations and is therefore within its right to cancel the plan.
Read All Good Publishing
Given the outcome of the situations discussed, it is critically important for homeowners to ensure that they review their home insurance coverage and understand any language specific to cannabis or cannabis cultivation.
Make sure that you don’t expand to more than the 4 factories required by law and check for any other restrictions that may exist in your area. Not all provinces and regions have the same rules. If you expand beyond the legal limit, it may give your insurance company a basis for denying an insurance claim or canceling your plan.
With current legal changes, don’t be surprised if you’re asked about expanding marijuana when you ask for new home insurance coverage. As long as the new state of marijuana is legal, there is no factor not to answer honestly. Also, not disclosing the whereabouts of the cannabis plant, even within legal limits, can cause problems in the future.
However, as long as you grow marijuana within legal limits and don’t use restricted equipment, your coverage may not be affected at all. Every circumstance and every plan is different, so it is best to verify with your insurance company that you are covered if you decide to expand marijuana.
In many cases, insurance providers are still determining the ins and outs of financing the harm associated with expanding marijuana in your home. Over time these plans will likely become more standardized, but until then it is highly recommended to disclose your plants and ensure that growth does not void your insurance.