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Bonnie Gibson v. Vermont Mutual Insurance Company
Docket No. INS-06-2145, Decision Issued January 4, 2007.

The insured requested a hearing following receipt of a notice of homeowners insurance policy nonrenewal citing the failure to provide photo confirmation that the home is complete as the reason for nonrenewal. At hearing, the company discussed the concerns it had regarding the home. The insured did not appear nor did she submit a sworn statement in lieu of appearance.

Held: For the insured. Although the Maine Property Insurance Cancellation Control Act, via 24-A M.R.S.A. § 3049(10), permits policy nonrenewal if the insured fails to comply with reasonable loss control recommendations within 90 days after notice from the insurer, the company’s notice stated that the reason for nonrenewal was the failure to provide a photograph confirming that the home is complete. A request for a photograph is not analogous to a loss control recommendation within the meaning of § 3049(10). The company’s notice did not inform the insured that the reason for nonrenewal was the failure to comply with loss control recommendations. Therefore, the company is precluded from invoking § 3049(10) at hearing as the basis for its nonrenewal action.
If not a cancellation ground under § 3049, the nonrenewal reason must be “a good faith reason and related to the insurability of the property.” 24-A M.R.S.A. § 3051. The company has not demonstrated that the failure to provide a photograph has any relationship to the insurability of the property, as the existence of a photograph or lack thereof does not impact insurability. Since the company has not demonstrated that the reason given for nonrenewal is related to the insurability of the property or that it conforms to a cancellation ground under § 3049, this policy must be renewed.