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Kelly Pike & Michael Bryant v. MMG Insurance Company
Docket No. INS-07-2111, Decision Issued January 7, 2008.

The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing certain conditions of the property. At hearing, the company presented evidence of the conditions and described the hazards presented. The insured discussed the repairs to the home and plans for continuing the renovation.

Held: For the company. An insurer may decline to renew a policy for a good faith reason related to the insurability of the property or a cancellation ground pursuant to section 3049. 24-A M.R.S.A. § 3051.

The insured testified about the repair of certain of the conditions mentioned in the nonrenewal notice, and the company did not dispute those issues. The company also did not address one condition identified in the notice. Those items may not provide a basis for policy nonrenewal.

The company, however, explained its concern regarding other conditions and identified the potential for loss that those conditions present. The company established those conditions relate to the insurability of the property. The company also demonstrated its compliance with the notice requirements of § 3051. This nonrenewal action is hereby permitted.