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Coverage Recommendations

Low Risk (0–10 Points)
Risk Profile:

  • Minimal cannabis-related activity

  • Personal use and storage within state legal limits

  • No cultivation or guest-hosting risks

Coverage Recommendations:

  • Standard Homeowners Policy Review

    • Check if your policy excludes cannabis under “Controlled Substances.”

    • If no exclusions exist for personal use or possession, minimal action may be needed.

  • Optional Endorsements

  • ISO HO 06 01 (Limited Cannabis Property Coverage):

    • Covers up to $1,000 for cannabis plants/products damaged by specified perils.

    • Offers a safety net for personal property risks.

  • Liability Coverage (ISO HO 24 01 Cannabis Liability Coverage):

    • Adds protection for lawful possession and use.

    • Aligns with typical liability limits ($100,000–$300,000).

Moderate Risk (11–30 Points)

Risk Profile:

  • Small-scale cultivation (personal use only) or hosting guests

  • Minor grow equipment (lights, ventilation)

  • Complies with local laws but potential liability exposures

Coverage Recommendations:

  • Cannabis Property Coverage

    • ISO HO 06 01 (Limited Cannabis Property Coverage):

      • Increase limits beyond $1,000 if the insurer permits (e.g., $2,500–$5,000).

  • Liability Coverage

    • ISO HO 24 01 (Cannabis Liability Coverage):

      • Essential for liability from guest injuries, property damage, or social host exposures.

      • Higher limits ($300,000–$500,000) are recommended.

  • Umbrella Policy

    • Personal umbrella with cannabis-specific endorsements can provide extra coverage.

  • Risk Management

    • Annual safety inspections for grow setups.

    • Enforce responsible guest management (e.g., safe transportation).

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High Risk (31–60 Points)

Risk Profile:

  • Significant cannabis activity, including personal/medical cultivation

  • Frequent hosting or prior cannabis-related incidents

  • High-wattage grow equipment or questionable legal compliance

Coverage Recommendations:

  • Comprehensive Property & Equipment Coverage

    • ISO HO 06 01 (Limited Cannabis Property Coverage):

      • Consider maximizing coverage (up to $10,000) or use standalone policies if needed.

  • Expanded Liability Protection

    • ISO HO 24 01 (Cannabis Liability Coverage):

      • Coverage limits of $500,000–$1,000,000 for bodily injury/property damage.

      • Essential for frequent hosting or higher-value assets.

    • Commercial Insurance (if applicable):

      • If activity verges on business use (selling, large-scale cultivation), consider a commercial cannabis policy.

    • Personal Umbrella Policy:

      • For high-value assets, limits of $1 million+ are advisable.

  • Safety & Legal Compliance

    • Professional electrical inspections for grow operations.

    • Proper chemical storage and adherence to state cannabis laws.

Critical Risk (61+ Points)

Risk Profile:

  • Extensive cannabis-related operations (e.g., commercial-scale cultivation)

  • Non-compliance with state/local laws

  • Previous lawsuits or multiple incidents of property damage

Coverage Recommendations:

  • Transition to Commercial Coverage

    • Standard homeowners insurance likely insufficient.

    • Look for specialized cannabis business insurance (property, product liability, etc.).

  • High-Limit Liability Coverage

    • Personal umbrella policy ($1–5 million).

  • Custom Risk Management Plan

    • Consult with specialists to mitigate exposure.

Conclusion
Low Risk: Minimal coverage adjustments required.
Moderate Risk: Higher liability limits plus proactive safety measures.
High Risk: Expanded liability, property coverage, or commercial policies.
Critical Risk: Comprehensive commercial insurance and rigorous risk management.
Each level reflects unique homeowner needs based on cannabis-related activities, property value, and liability exposure.

Thank you for completing the Cannabis Risk Evaluation Questionnaire.

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Please submit this form to your insurance representative or advisor to help identify any potential coverage gaps or liabilities. If you have questions regarding this questionnaire, contact us.

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