Wildfire risk upends California cannabis insurance
The $5 billion industry is under threat as insurers pull out and the state-created FAIR plan fails to cover growers.
When only part of the property is damaged — such as siding or a roof — and the insurance carrier cannot match the existing property, should the entire property be replaced in order to properly indemnify the insured? Ir is it acceptable for the carrier to simply repair the property and leave the roof or siding mismatched?
When replacement cost coverage is available, logic would dictate that “new for old” would apply and the entire item should be replaced; with mismatched siding, shingles, or other property, the value of the property is diminished.
However, various courts have found for both options; some state the entire thing should be replaced, while others have found that repairs, even if they do not match, are acceptable.
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The $5 billion industry is under threat as insurers pull out and the state-created FAIR plan fails to cover growers.
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Around one-third of consumers are unaware that macroeconomic factors, like inflation, impact insurance rates.
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