Cannabis and Insurance

Recreational cannabis use was legalized in Canada in October 2018. Since its legalization, a lot of questions have been raised about how using and growing marijuana could have implications for people’s insurance coverage. Here are the top five things you need to know:

1. Did you know that breaking your local cannabis laws could result in a denied claim, an increase in your premium, or even the cancellation of your policy? Despite legalization, specific laws regulate its use regarding possession limits, legal age, where cannabis can be used, as well as how much cannabis you can grow at home vary by province.

2. Unbeknownst to most, your home or tenant insurance policy may cover your plants and paraphernalia. If you own these items, your home insurance policy may cover your legal plants and paraphernalia. However, since this is considered a specialty belonging, this coverage will likely be subject to special limits set out by your insurer.

3. Driving under the influence of marijuana is just as serious as driving under the influence of alcohol. Similar to alcohol, there are laws that outline the legal limit for how much marijuana can be in your system while driving. These factors depend on your age, the class of your driver’s licence, among other factors. A conviction for driving under the influence could result in your car insurance policy being cancelled, as well as a significant increase in your premium.

4. To help plants grow, many opt to install lighting and new appliances. However, these modifications could increase your risk of experiencing a fire or other damage. As with any major change you make to your home, you should let your insurance broker know so they can ensure that you have the right coverage.

5. Thinking of throwing a party and sharing legal cannabis with your guests? You have responsibilities, which are very similar to as if you were serving alcohol. It’s no surprise that accidents happen, and you could have a lawsuit on your hands if someone injures themselves or has an unexpected reaction to cannabis. You could also be held legally responsible if someone drives under the influence and gets into a collision after your party.

Legalization is still new in Canada, meaning there are still a lot of questions about how using and growing cannabis will affect Canadians, as well as their insurance coverage. If you have any questions about how it may affect your own coverage, contact your Haas Insurance Broker today.