Currently, clever policy language says something close to “loss of personal property due to a covered peril that is considered illegal on a state OR federal level is excluded and not covered”
The key in the sentence is the state OR federal level part. This came about when weed started becoming legal in some states and insurers didn’t want to cover it within the definitions of personal property. So as long as it’s illegal at a federal level, insurers are good.
Whenever something like this happens whether it be weed, shrooms, meth or whatever… insurance companies pay big money for their contract lawyers on staff to come up with something clever to exclude things they don’t want to cover.
Seriously, if you ever sit down and read a policy contract, you’ll eventually start to ask yourself “well what the hell does my policy even cover?!?”