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Janet Mullen and Neil Salisbury v. Vermont Mutual Insurance Company

Held November 1, 2012– Docket No. INS-12-2112
Decision Issued:  November 6, 2012

The named insured requested a hearing to contest the nonrenewal of homeowners policy for lack of owner-occupancy of the property.  The company failed to provide evidence that its reason was related to the insurability of the property, and also failed to comply with statutory notice requirements.

Held: For the insured. 24-A M.R.S. § 3051 allows nonrenewal of a homeowners policy for a reason that is in good faith and related to the insurability of the property. Although the company established that the property is non-owner occupied, it testified this bears no relation to the insurability of the property, only to an improper coverage for the insureds. The company also only provided 28 days’ notice of the intended nonrenewal, and not the 30 days’ notice required by 24-A M.R.S. § 3051. Accordingly, the action fails on both counts.