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David & Elizabeth Young v. Patriot Insurance Company

Held April 10, 2008 - Docket No. INS-08-2022
Decision Issued: April 14, 2008

The insured requested a hearing to contest the cancellation of homeowners insurance due to the property being vacant and held for sale. The company argued that the lack of occupancy is a physical change, and that the property is uninsurable because it does not meet the definition of residence premises in the homeowners policy.

Held: For the insured. Even if the occupancy status had been established to be a change, neither a change in occupancy nor listing the home for sale constitutes a physical change in the property. The Maine Property Insurance Cancellation Control Act, in section 3049(1), makes a distinction between a physical change and a change in occupancy or use, therefore a change in occupancy is not a physical change in the property and does not trigger section 3049(5).