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Mich. Panel Says No Coverage For Marijuana Grow House Fire

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Conifer Insurance Co. has no duty to cover fire damage at a building housing a "marijuana growing operation," a Michigan state appeals court ruled, finding that the building owner clearly failed to have an automatic extinguishing system as required under its policy.

Affirming summary judgment for Conifer on Thursday, a unanimous three-judge panel rejected the building owner 23771 Blackstone LLC's argument that Conifer could not bar coverage because the insurer knew through its inspections that Blackstone lacked an automatic extinguishing system and decided to renew its policies anyway.

"As the trial court observed, however, the inspection reports were prepared solely for [Conifer's] benefit, not for [Blackstone], and there is no evidence of any 'representations, admissions, or silence' by [Conifer], intentionally or negligently, that induced [Blackstone] to believe certain facts," the panel wrote in their unpublished decision.



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