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Jill Holbrook-Peters v. York Insurance Company of Maine
Docket No. INS-07-2049, Decision Issued November 1, 2007.

The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing a condition of the property as the reason for nonrenewal. At hearing, the company presented evidence of the condition and identified the risks that the condition presented. The insured argued that the reason that the condition is not fixed is because of the company’s handling of a related claim.

Held: For the company. Under 24-A M.R.S.A. § 3054, the issue in this proceeding “is limited to establishing the existence of the proof or evidence used by the insurer in its reason for cancellation or intent not to renew.” Section 3051 requires the reason for nonrenewal to be a “good faith reason and related to the insurability of the property.” It is undisputed that the condition exists. The company explained the covered risks of loss that the condition presents and therefore, the company has demonstrated that its reason is related to the insurability of the property. The company further has demonstrated that its reason is a good faith reason. The company provided adequate notice of this nonrenewal action to the insured. The Superintendent of Insurance hereby concludes that the company has established adequate grounds for policy nonrenewal.