Insurance won't cover harms caused by tenant drug activities

Monday Jul 16th, 2018

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Their insurance provider declined to pay for the property damage when they tried collecting their $175,000 insurance policy.
The exclusion in their property insurance policy regarding illegal drugs is as follows:

We do not insure: 15. Dwellings, outbuildings or personal property contained in them, used in whole or in part for the cultivation, processing, manufacture, distribution or sale of marijuana or any product derived or containing marijuana or any other substance falling under the Controlled Drugs and Substance Act Narcotic Control Regulations.

In Canada, property insurance isn't directed as strictly as auto insurance. This implies home insurance providers are not committed to offer scope for damages caused by various circumstances, including drug-related cases. 

So it is getting difficult to find home insurance providers who would cover drug-related damages on their policies. What more when marijuana will be legalized?

Eden Mesganaw
WDCX Realtor in Brampton
WDCX REaltor in Mississauga
WDCX Real estate agent in Toronto
WDCX Real estate agent in GTA
 

 

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