Archives: 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011

William & Mary Webb v. Phenix Mutual Fire Insurance Company
Docket No. INS-07-2021, Decision Issued April 4, 2007.

The insureds requested a hearing following receipt of a notice of homeowners insurance coverage nonrenewal citing the insureds’ loss history and the condition that caused the loss as the reasons for nonrenewal. At hearing, the company discussed the loss and maintained that it had not received confirmation that the condition leading to the loss has been corrected. The insureds discussed the remedial measures that have been taken since the loss and presented their construction contractor as a witness to describe the repairs.

Held: For the insureds. The applicable statute, 24-A M.R.S.A. § 3051, provides that the “reason for nonrenewal must be a good faith reason and related to the insurability of the property or a ground for cancellation pursuant to section 3049.” Section 3051 also states that “loss record” by itself is not an acceptable reason for nonrenewal. A company must demonstrate a nexus or pattern to illustrate that the cause or nature of past claims is such that similar or continued future claims are likely.

Although the repairs to the home are not fully complete, the insureds have undertaken extensive work to eliminate the cause of the loss. In addition the insureds have elected to tackle extensive upgrades to the house and these upgrades will also reduce the risk of future loss. As the condition leading to the loss no longer exists, the company has not demonstrated that future claims of this nature are likely.