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Larry Milligan v. York Insurance Company of Maine
Docket No. INS-05-2020, Decision Issued July 20, 2005.

The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing two recent similar losses and the lack of precautions taken to prevent the second loss. At hearing, the company presented evidence of each claim and argued that the two losses are evidence of the increased likelihood of another loss occurring in the future. The insured argued that the company never warned him of the potential problems, and he has made changes to ensure that the losses will not be repeated.

Held: For the company. The changes that have made are not sufficient to prevent future similar losses. In addition, it is not the company’s duty to inform a homeowner of all of the potential risks of loss to a property. After the first loss, it should have been apparent that a second loss could easily happen. The increased risk of yet another loss exists. Accordingly, the similar loss activity and failure to take necessary precautions to prevent reoccurrence are good faith reasons related to the insurability of the property. See 24-A M.R.S.A. § 3051.

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