In the summer of 2001, the Canadian government legalized cannabis for medical use. By the fall of 2018, it became legal for personal consumption as well. Since then, cannabis use, and even home cultivation, has become increasingly normalized across the country.
As more Canadians explore growing their own cannabis plants, a common question arises: What does this mean for my home insurance? Today, we’re here to clear the air and answer your questions about how cannabis cultivation can impact your property coverage.
Why Does My Home Insurance Company Ask How Many Cannabis Plants I Have?
It’s all about staying within the legal limit for personal cultivation.
Under Canadian law, a household is allowed to grow up to four cannabis plants for personal use. Insurance companies ask this question to confirm that you’re not exceeding that limit. More than four plants is considered a grow-op, which falls under commercial insurance and requires proper licensing. If you are within the legal limit, there’s nothing to worry about, your policy can still provide coverage.
Can I Insure Cannabis Plants on a Home insurance Policy?
Yes, some policies offer covearge for personal use cannabis plants.
If you have a broad or comprehensive home or tenant insurance policy, you may already have coverage for cannabis plants and consumable cannabis products. Coverage limits vary by insurer, but some offer $500 or more. Not every policy includes this by default, so it’s important to speak with your broker to understand your options.
Does Having Cannabis Plants Increase My Home Insurance Premiums?
No, it does not.
Provided you have four or fewer cannabis plants growing on your property, your premiums will not be impacted. Four or fewer plants is not seen as having additional risk factors.
Can Growing Cannabis Plants Make it Harder to get Home insurance?
No, it is not more difficult.
If you're growing within the legal limit, there’s no impact on your ability to obtain property insurance. You're not considered a higher-risk customer just because you have cannabis plants at home.
What if I Grow Cannabis Plants and Tell the Insurance Company I Don't Have Any?
Generally speaking, lying to your insurance company is not a good idea. Misrepresenting yourself on an insurance application can have serious legal and financial consequences. Given that informing the insurance company doesn't increase your premiums or make it more difficult to insure your property, you should disclose cannabis plants to your broker.
A failure to disclose growing cannabis to your insurance agent or broker when submitting an application could lead to cancellation for misrepresentation, denied claims, or even more severe consequences.
Conclusion
If you’re growing cannabis at home, transparency is key. As long as you’re growing four plants or fewer for personal use, you’re operating within the law and should have no trouble getting or maintaining property insurance.
At Armour Insurance, we offer judgment-free advice and customized coverage that fits your lifestyle. If you’re looking for a home insurance quote, reach out to one of our expert brokers today.
