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Christopher & Krista McCormick v. York Insurance Company of Maine

Held May 18, 2010 - Docket No. INS-10-2036
Decision Issued: June 16, 2010

The named insured requested a hearing after receiving a notice of nonrenewal for cited conditions increasing the exposure to loss and failure to comply with recommendations relating to those conditions. The company demonstrated that two woodstoves are connected into a single flue, the woodstoves were installed by the insured and have not been professionally inspected to verify compliance with applicable code, and that the woodstoves are a significant source of heat.

Held: For the company. 24-A M.R.S.A. § 3051 allows nonrenewal for a reason that is in good faith and related to the insurability of the property. The company cited the National Fire Protection Association’s requirements for woodstove installations, which requires separate flues for solid fuel burning appliances. The company also demonstrated that one stove did not meet the required floor clearance to protect a combustible floor. As these conditions increase the exposure to a loss covered under the policy, the nonrenewal is permitted by the Maine Property Insurance Cancellation Control Act.