Insured's Lack of Knowledge of Tenant's Growing Marijuana Means Coverage Afforded for Fire Loss

Firefighters with fire in background

The tenant tapped a main power line into the attic, which caused the fire.

August 17, 2020
Tred R. Eyerly - Insurance Law Hawaii

The California Court of Appeals reversed the trial court's grant of summary judgment to the insurer regarding a claim for fire loss. Mosley v. Pacific Sec. Ins, Co., 2020 Cal. App LEXIS (Cal. Ct. App, May 26, 2020).

The Mosleys rented their property to Pedro Lopez. Six months later, the property was damaged by fire. Lopez had tapped a main power line into the attic to power his energy-intensive marijuana growing operation. The illegal power line caused the fire.

Pacific Specialty Insurance Company (PSIC) insured the property under an HO-3 Standard Homeowners policy. Paragraph E of the policy provided,

    We do not insure for loss resulting from any manufacturing, product or operation, engaged in:
  1. The growing of plants; or
  2. The manufacture, production, operation or processing of chemical, biological, animal or plant materials.

Mr. Eyerly may be contacted at


Arrange No Cost Consultation

Subscribe to Construction Defect Journal

Construction Defect Journal Archives - Recent CD News for Construction Claims Professionals


Construction Defect Journal is aggregated from a variety of news sources, article submissions, contributors, and information from industry professionals.

No content on this site should be construed as legal advice or expert opinion. By viewing this site you agree to be bound by its terms and conditions


Copyright 2020 - Construction Defect Journal – All Rights Reserved