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How Does Using And Growing Cannabis Affect Your Insurance?

Recreational cannabis use became legal in Canada in October 2018, however, many people are unaware of the repercussions that this drug could have on their insurance coverage. But how could that be? Isn’t marijuana legal now in Canada? These and other similar questions usually pop up when someone decides to venture into growing cannabis on their property, or when they use recreational cannabis with their guests. Read on if you have unanswered questions about the use of, or about growing cannabis in Canada and how cannabis legalization could affect your insurance coverage

Breaking Cannabis Laws Is Breaking The Law

Insurance companies are clear that if you break your local laws, you could be denied a claim, your premiums could increase, or your coverage may be cancelled outright. This couldn’t be more true in relation to cannabis use and growth. It is important to remember that just because cannabis became legal, there are laws that you must abide by since it is a psychoactive substance. Just like with alcohol, cannabis has specific laws around possession limits, legal age, where it can be sold and used, and how much cannabis you can grow at home. If you want to mitigate the risk of having your insurance coverage affected by the use and growing of cannabis, be sure to check your local laws, or the laws of other provinces when travelling across Canada. 

Special Coverage Limits On Your Marijuana Plants And Paraphernalia

In many cases, your insurance company could offer coverage for your cannabis plant and the paraphernalia used to grow it under your home or tenant insurance policy. The key word here is could. Just like with any other specialty items under your home insurance coverage, it is up to your insurance company to decide whether they will insure your cannabis plant and the paraphernalia used for its growth. Be sure to check with your insurance broker before you decide to invest in growing cannabis on your property.  

Driving Under The Influence Of Marijuana

Canadian law is clear that driving under the influence of marijuana is just like driving under the influence of alcohol, and this could have serious legal ramifications for those individuals breaking this law. Cannabis, like alcohol, has specific laws and legal limits with relation to factors such as how much marijuana can be in your system while driving, the class of your driver’s licence, or your age. Your insurance company can deny you coverage if you are convicted for driving under the influence, or you may find it hard to afford insurance as your insurance premiums could skyrocket. Additionally, you could be responsible for covering repairs and other costs if you were involved in a DUI collision resulting in a conviction. 

Modifying Your Home To Grow Cannabis Could Increase The Risk Of Fire

Modifying your home or adding new appliances to grow cannabis plants brings with it the increased risk of fire, and this could affect your insurance coverage. It is important to understand that if your insurance company deems your cannabis equipment as high risk, they have the right to cancel your coverage or deny your claim as a result of an emergency. It is always best to contact your insurance broker before installing new growing equipment so that you can have peace of mind about your insurance coverage eligibility. 

Your Responsibilities When Sharing Cannabis

Just like with alcohol, you are bound by responsibilities when sharing cannabis with your guests. Overlooking this fact can carry with it serious repercussions for you. For example, you could face a liability suit if someone gets hurt on your property due to their use of cannabis. Even more, you could be held legally responsible if someone drives away from your party under the influence of marijuana and and gets into an accident. Be sure that your guests use cannabis responsibly and never allow them to drive away under the influence of marijuana. 

If you have more questions with regards to using and growing cannabis legally and how this could affect your home insurance coverage, please contact us today so that we can answer your questions and give you peace of mind.