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Lynne Bubar v. State Farm Fire and Casualty Company

Held July 8, 2008 - Docket No. INS-08-2065
Decision Issued: July 29, 2008

The insured requested a hearing to contest the cancellation of homeowners insurance for “physical changes in the insured property that result in the property becoming uninsurable, specifically the dwelling is no longer owner-occupied.” The company argued that the property being occupied by a tenant is a change that render it uninsurable as it no longer meets the eligibility guidelines of a homeowners policy.

Held: For the insured. Under section 3049(1) the Maine Property Cancellation Control Act distinguishes between a physical change and a change in occupancy or use, therefore a change in occupancy does not constitute the physical change in the property required by section 3049(5). Without a physical change in the property, section 3049(5) is not triggered.