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Benjamin and Sarah Guiliani v. York Insurance Company of Maine

Held April 15, 2009 – Docket No. INS-09-2027
Decision Issued: May 14, 2009

The insured requested a hearing regarding the proposed nonrenewal of a homeowners policy for losses and for issues relating to occupancy and use of the insured dwelling. The company identified its concerns about the use of the property, but had no substantial evidence to support its reasons for nonrenewal.

Held: For the insured. Regarding the losses that had occurred at the property, the Maine Property Insurance Cancellation Control Act requires the reason accompanying the notice of the intended nonrenewal to be explicit. While the stated reason merely listed the losses that had occurred, York argued at hearing that it was the condition of the roof and the insured’s failure to make repairs from the losses that was the reason for the nonrenewal. As this reason was not conveyed by the notice of nonrenewal, the company is unable to rely upon it to support nonrenewal. As the reason only notified the insured that the policy was not being renewed due to the losses, which is not a permitted reason under section 3051, the nonrenewal action was denied on that basis. For the other two reasons cited, the company provided evidence that was either outdated, expired, hearsay, or inconclusive, and was not sufficient to establish its allegations relating to occupancy and use of the property.