You asked if regulations regarding the Connecticut FAIR Plan permit an insurer to cancel or not renew a policy if the building is partially unoccupied.

The Connecticut FAIR (Fair Access to Insurance Requirements) Plan is an association of property and casualty insurers that provides coverage on insurable property for owners who have been unable to obtain insurance elsewhere (See CGS § 38a-328). The Insurance Department established by regulation program standards that must be met for a property to be found insurable. If any program standard is not met, an insurer can (1) decline an application for coverage or (2) cancel or not renew a policy (Conn. Agencies Regs. § 38a-328-1 et seq. ).

One program standard that must be met is a minimum occupancy requirement. An insurer can cancel or non-renew a policy if the property remains vacant or unoccupied for 60 or more days, except for major renovations. A building is considered vacant or unoccupied if at least 75% of owner-occupied family dwellings of no more than three families or at least 65% of any other building is vacant or unoccupied (Conn. Agencies Regs. § 38a-328-11(b)(1)).

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