How will legalized cannabis impact my home and auto insurance?

The legalization of recreational cannabis on October 17, 2018, will allow individuals of legal age to buy, consume, possess, and grow cannabis across Canada. Like most other provinces in Ontario, the legal limit will include the purchase and possession of up to 30 grams of dried recreational cannabis. Beyond this, people will be able to grow up to 4 cannabis plants per household. To get the facts on cannabis in Canada, check out the federal government’s site here.

How will legalized cannabis impact my insurance?

Each insurance company is approaching the legalization of Cannabis differently. Many are updating their policy wordings to reflect the changes, but what each company puts into their policy differs. Here are some of the major areas insurance carriers are focused on:

How does legal cannabis impact my home insurance?

Because you will be able to grow and store cannabis plants at home, some insurers are altering their policy wordings and are adding a special limit of insurance that will pay up to a certain amount for any cannabis-related loss. If the insurer is updating their wording, it is most likely automatic, so it will be important to check your updated policy wordings. If your insurance company is updating their wordings, it will most likely also reflect the legal limits outlined in the legislation, specifically growing up to a maximum of 4 plants per household. Alternatively, some companies are currently waiting to see if any changes to the policy wording are necessary. It may be that their current wording is adequate to cover cannabis-related losses up to stated maximums in the policy already.

How does legal cannabis impact my car insurance?

The Federal legalization of cannabis also included the introduction of three new impaired driving conditions. These outline the maximum blood-drug concentration levels a person can have while driving. These drug-impaired convictions will be rated and treated in the same manner as we do today for alcohol-related impaired convictions.

As the legislation comes into effect, we will keep you updated on any information that may impact you or your insurance concerns. We do not anticipate any major changes to your insurance experience as a result of this legislation.

If you have any questions about the information above, please contact our team at Bryson Insurance.

*For business owners you may be interested in how legal cannabis will impact your business check out our webinar on The Impact of Cannabis on Your Workplace.