Archives: 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011| 2012

 

Daniel & Tricia Reny v. Travelers Indemnity Company of America

Docket No. INS-06-2080, Decision Issued August 3, 2006.

 

The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal cancellation citing vacancy and the lack of owner occupancy as the reasons for nonrenewal. At hearing, the company maintained that the insured had moved from the area and left the home vacant or unoccupied without proper daily custodial care. The insured maintained that a family member has moved into the house as a tenant until the house can be sold.

Held: For the insured. Under 24-A M.R.S.A. § 3051, “the reason for nonrenewal must be a good faith reason and related to the insurability of the property or a ground for cancellation pursuant to section 3049.” Section 3049(6) permits policy cancellation if the insured property is vacant and custodial care is not maintained.

To invoke section 3049(6), an insurer must prove that the insured property is both vacant and that custodial care is not maintained. As neither was established, this nonrenewal action cannot succeed under § 3049(6).

Section 3051 permits nonrenewal for a good faith reason related to the insurability of the property. Although the reason for nonrenewal gave the company the opportunity to demonstrate how a property’s lack of owner occupancy affects its insurability, the company did not avail itself of that chance. Instead, the company stated only that an unoccupied dwelling is not eligible for its homeowner’s program. In addition, the company did not provide evidence that the home is unoccupied, and the insured rebutted the company’s assertion through testimony that the home is now occupied by a family member.

Maine.gov | Professional and Financial Regulation | Privacy | Accessibility | Disclaimer