Cannabis and Home Insurance: How it Affects Coverage

Portrait d’un homme d’affaires agriculteur examinant l’état de ses plantes de cannabis.

With cannabis dispensaries opening across Canada faster than a Starbucks at every intersection, there’s still questions that arise about cannabis and its impact on home insurance. So, if you’re uncertain about how owning cannabis can impact your insurance, then this is the article for you. 

Am I Allowed to Possess Cannabis?

If you’re new to Canada, or simply unaware, then you should know that the answer is yes.

Cannabis has now been legal in Canada for over six years. The legal minimum age of purchase varies between provinces but it’s typically 18 – 19 years old. According to federal legislation, adults can possess up to 30 grams of legally produced cannabis and can grow up to four cannabis plants per household.

Does Possessing Marijuana Pose a Risk to Your Home?

Now that you know you can legally possess cannabis, the biggest thing to consider – when dealing with insurance – is assessing the risk. For example, does possessing cannabis pose a risk to your home? That can be a tricky thing to answer. If you consume cannabis by smoking, you may be at a greater risk of causing a fire, compared to consuming it in alternative ways.

If you intend on growing marijuana, insurance companies may assess potential risks such as the liability of guests who may be under the influence of marijuana in the home, increased risk of burglary, or even the equipment used to grow the plant malfunctioning and causing potential fire or water damage.

Does Growing Marijuana Impact my Home Insurance Premium?

Ultimately, the answer is no.

While there may be some risks associated with growing legal amounts of cannabis, it will not negatively impact your home insurance rates.

If Something Happens to My Cannabis Plants, is it Covered Under my Insurance?

It depends.

Not all companies have coverage for cannabis plants included in their property insurance policies; however companies like Allstate Canada does cover legal amounts of cannabis under its special limits (insuring up to $1,000 of cannabis in all consumable forms, topical medications, plants, and products).

Therefore, it’s important to ask your insurance provider if they offer this type of coverage (whether as part of the base policy or as an add-on).

Because the legal amount of cannabis plants to own is four, anything more than that is considered a “grow-op.” In those instances, provided that you have a business license to grow more than four plants, you may find that you may need small business insurance to provide coverage for the extra plants.

However, for Allstate customers, any homes that have grow-ops or more than 4 marijuana plants, are ineligible for coverage.

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