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Catherine Poulin Scovill v. Farm Casualty Insurance Company
Hearing #2005-15928, Decision Issued April 28, 2005.

The insured requested a hearing following receipt of a notice of homeowners insurance coverage nonrenewal citing an increase in hazard due to the home being under construction for an indefinite period. At hearing, the company testified that the property was a secondary residence for the insured and that it was a builder’s risk. The company further maintained that following renewal in 2004, it received no information that construction was complete. The insured stated that the policy was put in force earlier that expected and an extension on the policy until June or July 2005 was needed because a family illness was slowing down construction.

Held: For the insured. The company has not related a condition of the property to its insurability nor has it established a good faith reason for nonrenewal. The company failed to explain what hazards were increased by the property’s current condition. Further, the evidence indicates that the home will be complete in the summer of 2005; accordingly, the company has not demonstrated that the period of time for construction of the residence has been or will be indefinite.

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