A homeowner should be able to file a claim on a home insurance policy without fear of losing it.

That is at the heart of a battle that has ping-ponged around Delaware's walls of government for the past three years.

As it stands now, insurance companies in Delaware can refuse to renew a homeowner's insurance policy based on claims made on that policy. Insurers say it's a necessary part of their risk-based business. Delaware lawmakers and regulators say it shouldn't be so easy and have vowed to change things.

"People shouldn't be punished for using their homeowners insurance for the very reason that they bought it," said Delaware Insurance Commissioner Matthew Denn. "It's a very serious thing when somebody gets their homeowners insurance nonrenewed. ... It becomes very difficult to get an affordable policy."

This week, the issue resurfaced in the form of a court decision, when Delaware Superior Court Judge Susan C. Del Pesco ruled on Wednesday that Denn had no authority to pass a regulation banning insurance companies from not renewing homeowner policies.

"While addressing these issues may well be appropriate, and in the best interest of the public, the path chosen here is not permitted by law," Del Pesco wrote. "The regulation exceeds the Commissioner's authority."

On Thursday, Denn vowed to "cover all the bases" by appealing to the Delaware Supreme Court, while simultaneously renewing a push to change Delaware's laws.

State Sen. David Sokola, D-Newark North, said he would introduce a bill concerning the issue in the Senate on Tuesday. "This is a law in all states surrounding Delaware," Sokola said. "I hope the General Assembly will work with Commissioner Denn to pass this legislation promptly so homeowners can once again be protected."

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By LESLIE A. PAPPAS, The News Journal

Copyright ©2008, The News Journal.

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