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Brant Nelson v. MMG Insurance Company
Docket No. INS-07-2051, Decision Issued June 26, 2007.

The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing the rental of the dwelling and lack of owner occupancy as the reasons for nonrenewal. At hearing, the company maintained that the home is not owner occupied. The insured did not appear at the hearing.

Held: For the company. Under 24-A M.R.S.A. § 3051, “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.” No cancellation ground is applicable to this case.

The company has demonstrated that the property is currently tenant occupied, and it explained that a greater risk of loss exists when a home is rented. Thus, the company demonstrated that the fact that the home is rented has relationship to the insurability of the property. The company has shown that its reason for nonrenewal is in good faith and related to the insurability of the property.