A P.E.I. insurance company is reminding its customers that growing cannabis needs to be reviewed and assessed before coverage is provided.
That notification recently came from Prince Edward Island Mutual Insurance Company to its customers. In a letter, the company says coverage for buildings that cultivate, harvest, process, manufacture, distribute or sell cannabis is excluded from P.E.I. Mutual Insurance Company's policy.
Buildings that grow cannabis won't be insured unless it meets the company's underwriting standards, and customers must have an agent review the area to determine if coverage will be offered.
A company spokesperson was not available for comment on Friday. The company did issue a press release that says even though growing cannabis is legal, it also poses an increased hazard and must be reviewed and assessed before coverage can be provided.
In Canada, a person can legally grow up to four cannabis plants for recreational use.
David Cooke, president of the Insurance Brokers Association of P.E.I., said that setting up a growing operation in your home could be an electrical fire hazard. A claim could be denied if there has been a material change in risk or a material change in fact with respect to your situation.
"It's absolutely prudent and important that if you're growing pot, whether if you're a tenant or a property owner, have the conversation with your broker or your insurer to make sure that if something does happen, regardless of what it is, you're safe," he said.
