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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-11-2072 Decision
Brenda Foster v. Travelers Indemnity Company of America
Held October 14, 2011 - Docket No. INS-11-2072
The named insured requested a hearing to contest the nonrenewal of her homeowners policy due to the dwelling no longer being owner occupied. The company argued at hearing that the named insured is not the deeded owner of the property; arguing that she has no insurable interest in the property and would be potentially unable to collect on a claim.
Held: For the insured. The Maine Property Cancellation Control Act allows nonrenewal for a reason that is in good faith and related to the insurability of the property. Generally, the relation to insurability required by section 3051 is viewed as a condition or circumstance that increases the likelihood of a loss under the policy, which is of detriment to the insurer. In addition, insurable interest exists not only when the insured owns the property that is the subject of the insurance, but also if the insured benefits from the continued existence of the property or would suffer a loss from its destruction. As the insured has lived in and maintained the dwelling for over a decade, including paying its property taxes, she has an insurable interest. There are no grounds for nonrenewal on this basis.
Last Updated: January 16, 2014
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