The national Homeowners guide covers the ISO HO forms (HO-2, HO-3, HO-4, HO-5, HO-6, HO-8), Sections I and II, the coverages, perils, exclusions and conditions. This guide covers the Maine rules that sit on top of those forms. The main ones are the Property Insurance Cancellation Control Act (PICCA) and Maine's hurricane deductible rule.

Who PICCA protects (24-A M.R.S. 3048)

PICCA applies to policies on owner-occupied real property used only as a residence with no more than 4 apartments. It also covers the residents' personal property and personal liability. That includes homeowners policies and owner-occupied dwelling fire policies.

Cancellation (3049)

• Underwriting period: the cancellation limits don't apply to a new policy in force less than 90 days. The period is 120 days for a non-primary residence expected to be empty at least 3 months a year (Bulletin 391). Renewals are always protected.
• After that period, cancellation is allowed only for listed reasons, including:
  • nonpayment of premium
  • fraud or misrepresentation
  • conviction of a crime that increases the insured hazard
  • negligent acts that substantially increase hazards
  • vacancy with no custodial care
  • a trampoline, or an unfenced swimming pool, still there 30 days after the insurer's notice
  • a dog bite loss, unless the insured removes the dog after receiving notice
  • failing to follow reasonable loss-control recommendations within 90 days of notice
• Age of the dwelling alone is not a reason (3057). The insurer must consider the home's current condition.

Notice rules (3050, 3051)

• A mortgagee gets the same notice.
• A nonrenewal notice must give explicit, good-faith reasons and explain the right to a hearing. "Underwriting reasons," "loss record," "location of risk" or "credit report" aren't enough on their own.
• A certificate of mailing is conclusive proof of receipt on the 5th day after mailing for cancellations and the 3rd day for nonrenewals.
• If the insured buys an equal or broader replacement policy, the first insurer may simply nonrenew as of the new policy's start date (3052).

Hearings (3054)

• The insured may ask the Superintendent for a hearing within 30 days. The insurer bears the burden of proof. A statement that the risk doesn't meet underwriting guidelines isn't enough by itself.
• The Superintendent may keep the policy in force while the hearing is pending.
• If the insurer wins, the Superintendent may keep the policy in force another 14 days so the insured can find other coverage.

Other Maine homeowners rules

• Agency termination is not a valid reason to nonrenew (Bulletins 316, 489).
• Prior owner's claims: an insurer can't refuse a policy solely because a previous owner filed claims on the home (3058).
• Valuation increases beyond routine inflation adjustments may be made only at renewal, with at least 30 days' notice stating the reason and amount (3059).
• Family child care: an insurer can't refuse coverage solely because the insured runs a family child care business, if the provider has separate business liability coverage that includes equivalent medical payments coverage (3060).
• Roll-on coverage: adding coverage and premium without the insured's prior approval is a deceptive practice. Pre-sold inflation guard increases are excepted (Bulletin 143).
• Credit information: an insurer can't deny, cancel or nonrenew solely on credit (2169-B).
• Residual market: if no admitted insurer will write a home, a producer with surplus lines authority may place it with an eligible surplus lines insurer after a diligent search (2004; Bulletin 457).

Hurricane deductibles (24-A M.R.S. 3061; Rule 960)

These rules apply to PICCA-type policies.

• Trigger: the deductible period starts when the National Weather Service issues a hurricane warning for a forecast zone that includes any part of the property's municipality. It ends 24 hours after the last warning for that zone is lifted.
• It applies to wind, rain and wind-driven object damage whether or not hurricane-force winds reach the property.
• The deductible may be a dollar amount or a percentage of the property coverage.
• A written notice must go with every new and renewal policy that has one, and the deductible must appear on the declarations page.
• If a policy also has a windstorm or named-storm deductible, only the hurricane deductible applies to losses within its scope.

Common exam traps

• PICCA covers owner-occupied, residential, 1–4 unit property.
• Underwriting period: 90 days, or 120 for seasonal homes.
• Notice: 10 days for nonpayment, 20 for other cancellations, 30 for nonrenewal. The mortgagee gets the same notice.
• The age of the house alone, a prior owner's claims and an agency termination are not valid reasons.
• The hurricane deductible window ends 24 hours after the last warning ends.