In October 2018, Canada became the second country to legalize cannabis for recreational use. This change in the law has had repercussions for consumers.
According to a survey conducted by Statistics Canada, between 2018 (before legalization) and 2019, cannabis use increased, especially among people aged 25 and older (from 13.1% to 15.5%) and among men (from 17.5% to 20.3%).
À la lueur de ces constats, Assurances Multi-Risques souhaite vous informer de l’incidence que peut avoir la possession et la consommation de cannabis sur votre assurance habitation!
Reminder of the law governing cannabis
Before we begin, here are the rules regarding the sale, possession, and consumption of cannabis in Quebec. It should be noted from the outset that the legal age for cannabis possession is 21.
Sale of cannabis
Only the Société québécoise du Cannabis (SQDC) can sell cannabis at retail in Quebec. Packaging must be neutral. The SQDC can sell dried cannabis, pre-rolled joints, extracts, beverages, and edibles.
Cannabis used for medical purposes
The sale and distribution of cannabis for medical purposes remains under federal jurisdiction. A consumer of cannabis for medical purposes must have a permit. They are also subject to possession limits.
Personal culture
It is strictly prohibited to grow cannabis for personal use in the province of Quebec. It is also prohibited to possess a cannabis plant.
However, it is worth noting that this
Possession
Minors
- Complete ban on cannabis possession.
Individuals aged 21 and older
- 30 grams in a public place
- 150 grams in a private place such as your residence. It is important to note that the 150-gram limit applies to a single residence. Regardless of the number of people residing there, the limit will not be increased.
It is prohibited to possess or consume cannabis near schools, daycare centers, playgrounds, and in enclosed public places.
What impact does cannabis have on insurance?
In 2018, property and casualty insurance was impacted by the new law that came into effect. This affected home insurance, auto insurance, business insurance, and insured liability.
Why can cannabis affect my insurance policies?
Tout simplement parce que la possession et la consommation du cannabis constituent un risque supplémentaire pour les compagnies d’assurance. Il s’agit d’un exemple de ce qui constitue une aggravation de risque.
Cannabis: an increased risk
Insurance companies try to assess the risk they are willing to take in their business activities. They attempt to calculate the likelihood of a loss occurring that would require a claim.
Smoking inside your home is a factor that increases the risk of fire. Nearly 20% of residential fires are believed to be caused by smoking materials. Consequently, additional risks (fire, theft, vandalism, etc.) mean higher premiums.
Is cannabis considered insurable property?
Adults can now have up to 150 grams of cannabis in their homes. Cannabis and its accessories are considered personal property. It is therefore entirely possible to receive compensation in the event of loss if you have sufficient protection.
The limitations included in a home insurance policy therefore apply to these goods, and exclusions such as: use of the premises, vandalism, and illegally acquired or possessed goods will also continue to apply in accordance with the legal framework established by the Quebec government regarding possession and cultivation.
You must comply with the law to be compensated!
In any case, if you wish to make a claim and receive compensation, you must comply with the law. For example, if you have more than 150 grams of cannabis and your house burns down, your insurance will not reimburse you.
If you had 130 grams at the time of the accident, your insurance will reimburse you for the value of your cannabis.
Cannabis legislation is new in Canada. Insurance companies are still adapting to this change. It’s a safe bet that the law will continue to evolve, which will continue to have an impact on the insurance industry.
The terms may vary from one company to another. Our best advice? Contact your independent insurance broker, who is best placed to advise you on this matter. So don’t hesitate!
*Source: Statistics Canada