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Elizabeth Allen v. Patrons Oxford Insurance Company

Held January 31, 2008 - Docket No. INS-08-2001
Decision Issued: February 29, 2008

The personal representative of the estate of Elizabeth Allen requested a hearing upon receipt of a notice of nonrenewal of homeowners insurance due to the death of the insured and ensuing lack of owner occupancy of the property. The reason cited this to be a physical change rendering the property uninsurable and a resultant change in exposure increasing the risk of loss.

Held: For the insured. The property insured by this policy is a seasonal property, historically used by several family members during the summer months. No significant change in either the occupancy or the use of the property could be established, and the company did not explain how the risk of loss was increased or how the property was uninsurable. An additional issue relating to the ownership of the property was raised at the hearing, but as that was not included in the stated reason for the nonrenewal, it could not be considered in determining the validity of the nonrenewal action. The Property Insurance Cancellation Control Act requires the reason for nonrenewal to be explicit, and only those reasons articulated in the notice of nonrenewal can be considered at hearing.