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Michael and Pamela Ott v. Travelers Indemnity Company of America

Held June 10, 2009 – Docket No. INS-09-2051
Decision Issued: June 17, 2009

The insured requested a hearing to contest the nonrenewal of a homeowners policy for the property’s lack of owner occupancy. It was established that the home is unoccupied and for sale. The company cited the increased exposure to claims due to lack of occupancy and increased severity of loss due to delayed discovery of a loss.

Held: For the company. The Maine Property Insurance Cancellation Control Act permits nonrenewal of a homeowners policy for a reason that is in good faith and related to the insurability of the property. As the change in occupancy corresponds to an increased likelihood of losses, it meets the standard for nonrenewal.