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Lydia Richard v. Underwriters at Lloyds, London

Held April 11, 2013– Docket No. INS-13-2025
Decision Issued:  April 26, 2013

The named insured requested a hearing to contest the nonrenewal of a homeowners policy because of 60 amp fuses. The company failed to establish how this condition affects the insurability of the property.

Held: For the insured. 24-A M.R.S. § 3051 permits nonrenewal of this type of policy if the reason is in good faith and related to the insurability of the property. As the policy excludes coverage for a loss relating to the insured’s failure to have updated the electrical system to current code within the past 25 years, it does not appear that the policy provides coverage for any fire loss relating to the outdated electrical system and wiring. Accordingly, the company failed to establish how its reason relates to the insurability of the property if it does not insure that exposure.

Last Updated: April 15, 2014