Page 16 - May2017

Ultimate

Guide to

Marijuana

Use &

Insurance

By Nick DiUlio

The stakes have never been higher for marijuana legislation that it’s also not legal according to federal law. And that’s
and the insurance industry as lawmakers and regulators led to a real quandary,” says Brenda Wells, director of the
wrestle with the ramifications of legalizing this once risk management and insurance program at East Carolina
universally banned substance. University in Greenville, North Carolina. “Do they cover
it? Do they not cover it? And if they do cover it, how is
The past decade has been undeniably transformative for it valued? These are just some of the questions they’re
U.S. marijuana laws. To date, 28 states and the District of wrestling with at this stage. And it can get confusing.”
Columbia have broadly legalized cannabis in one form or
another, including the recent legalization of recreational To help you wade through these muddy waters,
marijuana in California, Massachusetts, Maine and Nevada insuranceQuotes offers some key considerations for
during the November 2016 election cycle. marijuana’s impact on various components of the insurance
industry.
But whether it’s being used as medicine or for leisure, the
marijuana legalization trend has resulted in myriad state Marijuana and Homeowners Insurance
laws that conflict with the federal government’s official
position on the production, possession and consumption The question is simple: If you have some marijuana and it’s
of cannabis. What’s more, the particulars of individual damaged in a fire or stolen from your property, will your
state laws are anything but uniform, and what’s considered homeowners insurance policy cover the loss?
legal in one state may be unlawful in another - even if they
both allow for some degree of marijuana possession or The answer, however, is not so straightforward.
consumption.
Some insurers are looking to individual state laws to
As a result, the insurance implications are as varied as they establish a precedent for coverage. For instance, Allstate
are complicated. went on the record in 2014 saying it would cover the loss
of marijuana in Colorado, where cannabis is legal for both
“The insurance industry has run into an interesting area medicinal and recreational use.
where they know marijuana is legal in some states but

16 insight may 2017