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William McCormack v. Phenix Mutual Fire Insurance Company
Docket No. INS-07-2043, Decision Issued June 12, 2007.

The insured requested a hearing following receipt of a notice of homeowners insurance coverage cancellation citing certain conditions of the property and the ongoing construction of the dwelling after a loss as the reasons for cancellation. At hearing, the company explained that re-building the home should have been completed within six months following the loss, and the conditions noted by the inspection indicate that there is a significant amount of work remaining. The insured demonstrated that the conditions cited in the notice have been fixed.

Held: For the insured. Under the Maine Property Insurance Cancellation Control Act, an insurer may cancel a policy for physical changes in the insured property which result in the property becoming uninsurable. 24-A M.R.S.A. § 3049(5).

The photographs presented by the company depict a dwelling under construction. The several items noted by the company could have been present before the loss. The company did not establish the original condition of the property and therefore, it did not establish a change. In addition, the company did not explain why the property is uninsurable. Finally, the insured provided evidence that the two conditions specified in the notice have been addressed. The company has not demonstrated that it has met the requirements to cancel this policy.