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Esquaree Payne v. MMG Insurance Company

Held June 26, 2012 – Docket No. INS-12-2051
Decision Issued:  July 5, 2012

The named insured requested a hearing to contest the nonrenewal of a homeowners policy. The reason for the nonrenewal was the use of a woodstove as the sole source of heat for a property located on a road that is not maintained in the winter. The company demonstrated that this primary residence is a greater risk for a total fire loss.

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 demonstrated that the property had been insured as a seasonal occupancy and the company only recently discovered it is occupied year round. As the road is inaccessible to vehicle travel all winter, and a woodstove is the sole heat source, there is a greater risk of loss covered by the policy. As the company complied with the requirements in the Maine Property Insurance Cancellation Control Act, the nonrenewal is permitted.

Last Updated: April 15, 2014