Cultivating homegrown pot on Prince Edward Island? Better check your home insurance first.

A P.E.I.-based insurance company informed policyholders last month that it will refuse coverage for any building and its contents where cannabis is being cultivated, unless the company can ensure it is being grown in a safe manner.

P.E.I. Mutual Insurance Company sent mailed letters to policyholders noting that growing cannabis is associated with an increase in risk in commercial and residential buildings alike.

“With the electrical systems, they need to be properly set up by an electrician. If you’re introducing heating systems, they need to have a CSA or similar approval. And they need to be put to their proper use and not improperly modified,” Blair Campbell, company CEO and general manager, told CBC News.

Adult-use cannabis became federally legal in October 2018, and the federal Cannabis Act makes clear that individuals may cultivate up to four adult-use plants per domicile for personal consumption. This is reflected in the provincial law on P.E.I.

Even so, P.E.I Mutual noted that policyholders wanting to grow weed must inform the company of their plans. Once done, the company will send an underwriter to verify that the plants are being grown in a safe setup. If policyholders fail to inform the company about their cannabis cultivation, their coverage is void.

The insurer noted its primary issue with cannabis cultivation is the risk of fire resulting from heating and/or electrical components used in the growing process, as well as potential water damage or mould growth due to increased humidity.

“People can sometimes lose sight of the fact that, you know, they’re introducing heating and electrical systems that create these fire risks and lives are at risk,” Campbell said. “I want to be clear we’re not discriminating, we’re not concerned about use, we’re not judging that at all — where we’re concerned mostly about the safety aspect.”

In any case, anyone planning on growing in residential or commercial buiildings would be wise to double-check his or her insurance policy before breaking out the green thumb.