Canadians confused about cannabis’ impact on their insurance

Starting Oct. 17, 2018, Canadians aged 18 and older will be able to legally buy, use, possess, and grow recreational cannabis.

However, less than 50 days before the legalization date, it’s unclear which insurance providers will allow Canadians to grow cannabis at home without voiding their coverage, finds a survey by Ratehub.ca. There is also uncertainty around how insurance providers will account for potential increased risks when pricing policies for homeowners, renters, and landlords.

In addition, many Canadian renters may find themselves battling their landlords for the right to be able to smoke and grow cannabis at home.

“We strongly encourage all Canadians to talk to their insurance providers if they are planning to grow or smoke cannabis once it is legalized,” says Alyssa Furtado, co-founder of Ratehub Inc. and CEO of Ratehub.ca.

“However, we’re also calling upon insurance providers to use legalization as an opportunity to be upfront with Canadians, and really go above and beyond in clarifying how legal cannabis use may affect their insurance rates and coverage,” she adds. “Given they are responsible for defining changes within the industry, they need to be more transparent about how cannabis legalization may affect Canadians’ insurance.”

Here are some findings from the survey, which polled 1,200 Canadians during July and August 2018.

• 28% of renters believe Canadians should have the right to smoke and grow cannabis within their rental units, even if their landlord forbids it through their lease or if their building management forbids it through its rules for renters.
• 38% of renters don’t know whether they’re automatically able to smoke cannabis within their rental units, even if their landlord or property management group bans it, and 58% of renters don’t know whether they automatically have the right to grow cannabis.
• 59% of renters don’t know if their renter’s insurance would cover damages to their rental unit related to growing cannabis, and 32% don’t believe their renter’s insurance policy would provide coverage.
• 62% do not feel renters should be allowed to smoke cannabis within their rental units, while 58% of landlords do not feel renters should be allowed to grow cannabis within their rental units.
• 59% of landlords plan to place restrictions on whether renters can smoke cannabis in their rental units, while 51% will place restrictions on whether renters can grow cannabis.
• 57% of landlords don’t know whether their landlord’s insurance policy would cover a renter’s damages to their rental unit related to growing cannabis, and 28% of landlords don’t believe their policy would provide coverage.

Impact on homeowners

• 79% of homeowners don’t know if their home insurance policy would cover damages related to growing cannabis.
• 20% believe their home insurance policy would not provide coverage.
• 80% of Canadian homeowners have no plans to grow recreational cannabis once it is legalized; 7% will be growing cannabis; and 12% said they’re undecided.
• 72% of renters do not plan on growing cannabis within their rental units once it is legalized; 13% said they will be growing cannabis; and 15% are undecided.

Impact on car insurance

• 74% feel driving while high should be penalized in the same way as driving while drunk. However, 28% don’t know whether getting caught driving high would affect their auto insurance premiums.
• 40% don’t know whether legalization will have any impact on home and car insurance rates for all Canadians. Comparatively, 27% believe legalization will not have any effect on insurance rates, although 33% believe legalization will cause home and car insurance premiums for all Canadians to rise.

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This story was originally published by Canadian Insurance Top Broker.