Insurance For Landlords With Cannabis Growing Tenants
Insurance for landlords with cannabis growing tenants is something that needs special attention because the process to secure insurance tenants growing cannabis is different from the standard insurance placement. Insurers view insurance for landlords with cannabis growing tenants as high risk and there are a limited number of insurers who are even comfortable underwriting these sorts of risks.
Reasons Why Insurance For Landlords With Cannabis Growing Tenants Is Considered High Risk
There are a number of reasons why insurance for marijuana growing operations is considered high risk including:
- Higher probability of fire
- High market/dollar value of the product and inventory
- Potential for water damage due to the growing systems
- Concerns over mould and fungus risk
- High business interruption exposure given the value of the product and growing time needed
- Spoilage risk of the inventory
- High value and specialized nature of the equipment, lights, ventilation systems etc.
- Significant machinery breakdown exposure due to equipment needed for growing and sensitivity of the products to temperature and humidity
What’s Required To Get Insurance For Landlords With Cannabis Growing Tenants
The information needed to secure insurance for a property that has a marijuana grow operation includes all of the typical things needed, but a number of additional items specific to the details of the growing operation and they typically include:
- A completed statement of values
- A completed business interruption worksheet
- COPE Information on the location
- Completed marijuana growers insurance application (ask an ALIGNED Advocate for a copy)
- Passed Electrical Inspection, conducted by a licensed contractor
- Copy of tenants growing license
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