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Walden Dillaway v. York Insurance Company of Maine

Held July 2, 2008 - Docket No. INS-08-2068
Decision Issued: July 14, 2008

The insured requested a hearing after receiving notice that the homeowners policy covering his seasonal property was being cancelled for specific physical changes in the property that result in the property becoming uninsurable. Part of the cited changes involved the resultant damage from a recent loss, which is being repaired.

Held: For the insured. The Maine Property Insurance Cancellation Control Act permits cancellation for physical changes in the insured property that render the property uninsurable (24-A M.R.S.A. § 3049(5). In order to support a cancellation action under this section, the company must establish that the cited conditions are a physical change in the property, and explain how those conditions render the property uninsurable. York did not establish that the conditions unrelated to the recent loss were in fact a change in the property’s condition. The insured testified that the remaining conditions had been addressed prior to the issuance of the notice of cancellation and repairs are proceeding on a timely basis.