Law360 Canada ( November 22, 2021, 9:15 AM EST) -- Appeal by the plaintiffs from a decision confirming a Master’s decision granting summary judgment dismissing their claim against the respondent insurer on the basis that their policy excluded coverage for loss or damage caused by illegal drug operations and that their claim was statute barred. The appellants held a home insurance policy. In 2010, they rented their home to tenants who used it for a marihuana grow operation. In December 2010, Alberta Health Services issued an order deeming the property unsuitable for habitation. Significant rehabilitation work to the house was required. The appellants advised the insurer of the loss in December 2010. The insurance broker did not advise the appellants to obtain different coverage because of the rental although advised of the change in use. In February 2011, the appellants received a letter from the insurer formally denying their claim on the basis that the grow operation fell within the illegal drug operations exclusion clause and an exclusion for loss and damage caused by vandalism. When the male appellant attended law school in 2015, he learned about an insurer’s duties. In their Statement of Claim filed in 2017, the appellants alleged the insurer was estopped from claiming there was a material change in risk because it knew about the rental and did not follow the required steps to avoid coverage. They also alleged that while the adjuster had advised them there was no coverage based on an exclusionary clause in the policy related to illegal drug operations, she also indicated they would not be covered in any event because they did not have the proper insurance in place after the home became a rental unit. The appellants did not appeal the finding that the loss suffered fell within the illegal drug operations exclusion clause but argued they continued to have a separate, actionable claim for making an alleged false and misleading representation that the insurer could avoid coverage by relying on material change in risk....