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Lisa Stevens v. Metropolitan Property & Casualty Insurance Company
Docket No. INS-05-2067, Decision Issued November 4, 2005.

The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing lack of owner occupancy as the reason for nonrenewal. At hearing, the company testified that the insured no longer resides on the premises but the policy is written to cover an owner-occupied exposure. The insured did not appear at the hearing either in person or by statement.

Held: For the company. Because the policy is a homeowners policy, the requirements of sections 3051, 3054 apply to this case. Section 3051 states that the reason for nonrenewal must accompany the notice “together with notification of the right to apply for a hearing before the Superintendent of Insurance within 30 days as provided.” The company’s notice informed the insured of the right to a hearing but it did not mention the 30 day time period in which to request the hearing. Thus, the notice does not meet part of the applicable statutory requirement. However, the insured timely requested a hearing within 30 days of receipt of the notice, and therefore, any deficiency in the notice as a result of the omission of the 30 day time limit constitutes harmless error.

The evidence indicates that the property is solely tenant occupied. The coverages and corresponding premiums associated with homeowners policies are based upon exposures common to dwellings in which the owner resides and differ from policies insuring tenant-only occupied properties. The fact that the home is no longer owner-occupied is a good faith reason that is related to the insurability of the property.

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