Cannabis

[Rot6669]

In Oregon Can State farm denie covering cannabis growing equipment after fire burned house. And Grow equipment was not the cause of the fire. Its state legal for growing and use in Oregon state

 

[quincy]

In Oregon Can State farm denie covering cannabis growing equipment after fire burned house. And Grow equipment was not the cause of the fire. Its state legal for growing and use in Oregon state

What does your policy with State Farm say?

 

[xylene]

Is sate farm denying all coverage or just the grow equipment?

Did You disclose your grow and value of the equipment before the fire?

 

[FlyingRon]

Every policy has a list of articles that aren't covered (without an additional rider). Often, agricultural stuff not directly related to residential use is not. For example, lawn mowers would be covered. A combine wouldn't. You'll have to read your policy and inquire as to what their justifications on not covering the items is.

 

[Zigner]

In Oregon Can State farm denie covering cannabis growing equipment after fire burned house. And Grow equipment was not the cause of the fire. Its state legal for growing and use in Oregon state

It's not legal at a federal level...

 

[FlyingRon]

It doesn't have to be illegal for it not to be covered.

 

[Zigner]

It doesn't have to be illegal for it not to be covered.

Agreed - I was just pointing it out to the OP because, even if other exclusions don't apply, there may be an exclusion for personal property used for illegal activities.

 

[LdiJ]

Agreed - I was just pointing it out to the OP because, even if other exclusions don't apply, there may be an exclusion for personal property used for illegal activities.

Maybe, but insurance is regulated at the state level rather than the federal level, so that would be a little odd to exclude something that was legal on the state level, just because its not legal on the federal level. Its more likely that it would be excluded because it needed a rider.

 

[PayrollHRGuy]

From https://www.insurancejournal.com/news/national/2019/03/14/520607.htm

“Those directly and tangentially involved in the industry need insurance that addresses the specific needs of growers, retailers, distributors, property owners and lab researchers,” the A.M. Best report says. “However, despite growing demand from both producers and retailers alike, many carriers are reluctant to embrace the industry, owing to its classification as a Schedule I drug in the eyes of the U.S. federal government, under the Controlled Substance Act of 1970.”

Because marijuana is not legal at the federal level, some carriers see marijuana insurance as a “debatable” move, A.M. Best said.

 

[Zigner]

Maybe, but insurance is regulated at the state level rather than the federal level, so that would be a little odd to exclude something that was legal on the state level, just because its not legal on the federal level.

It depends on the wording of the policy.

 

[LdiJ]

It depends on the wording of the policy.

I agree that the wording of the policy matters, but the wording of the policy must also meet state regulations.

 

[Zigner]

I agree that the wording of the policy matters, but the wording of the policy must also meet state regulations.

Are you implying that a prohibition on equipment used for illegal purposes would somehow run afoul of state regulations?

 

[LdiJ]

Are you implying that a prohibition on equipment used for illegal purposes would somehow run afoul of state regulations?

I think that it would run afoul of state regulations in a state where marijuana is legal. Once again, insurance is a state regulated industry subject to state regulations, not federal ones.

 

[Zigner]

I think that it would run afoul of state regulations in a state where marijuana is legal. Once again, insurance is a state regulated industry subject to state regulations, not federal ones.

In essence, you're guessing.

 

[PayrollHRGuy]

Do you have reason to believe that any of the states where pot is legal, have a law that says insurance companies must cover them?