 January 12, 2009 Reported By: Keith McKeen
Landowners and snowmobilers are hoping that an insurance company's decision to deny insurance to a homeowner who allows snowmobiles to his cross his property is not a harbinger of policies to come. The Maine Snowmobile Association is perplexed by the company's decision, and so are state regulators. In the past, landowners have not been held liable for for the injuries of snowmobilers who cross their property.
From Fort Kent to southern York County, and from western Maine ski country to the New Brunswick border, nearly 290 clubs belong to the Maine Snowmobilers Association. Their trails run between hills and through woodlands, and when it's approved by private landowners, across pastures and through backyards. But landowner Art Beulay, who accommodates snowmobilers with a trail across his fields has hit a speed bump--not on the trails but from his insurance company.
"I got a notice that about the 25th of November they were going to cancel my homeowner's insurance because I let snowmobiles cross my property. The local club has a right of way to go across my property."
The Bowdoinham resident, a member of the Bowdoinham Snowbirds Snowmobile Club himself, says the machines have been crossing his property for 30 years. Nevertheless his insurance company, Triple A, is not willing to take on the risk of a lawsuit as the result of a serious snowmobile accident. Bob Myers, Executive Director of the Maine Snowmobile Association, says Buelay was allowing the use of his property like thousands of other Maine landowners. "Of course, it always concerns us when an insurance company seems to make some kind of arbitrary decision that's really unfounded."
Unfounded, says Myers, because Maine landowners are protected by a liability law. It says that homeowners, unless they willfully create a hazardous condition with the intent of causing harm, have no liability if someone should be injured while recreating or harvesting wood on their property. Bob DuPlessie is also somewhat surprised by Triple A's decision and hopes it doesn't start a trend among insurers. DuPlessie is Director of Recreational Access and Landowner Relations for Maine Department of Inland Fisheries and Wildife, and Department of Conservation.
"Usually when we've had landowners that have had apprehension about it, once we give them a copy of the law and explain it to them, it's always been taken care of. There's never been a problem overall. I mean some still are resistant just to the idea, but overall, the system has worked very well for many years, and this is a concern." DuPlessie says that the Maine law is even a model that other states have copied. He says records indicate there have been only two court liability cases involving snowmobilers who've sued landowners, and the landowners won both.
"The insurance company is just not willing to underwrite that risk," says Matt McKenzie of Triple A New England. McKenzie says that in spite of the state's opinion of the liability law, his company doesn't believe property owners are well enough protected from litigation. "It clearly states we feel the existing law fully protects landowners. However, that would not prevent someone from bringing a lawsuit against a property owner or the homeowner, and inevitably the insurance company is going to pay to defend that lawsuit. And that's the risk that we're not looking to be exposed to."
Bowdoinham property owner Art Beulay was able to get coverage from another insurance company. But he hopes the cancellation of his insurance by Triple A doesn't have a ripple effect on other landowners. "This could be a statewide mess. Right here in this town alone, this particular club crosses over 200 private pieces of property. Now, take the whole state and just look how many people are involved."
Matt McKenzie says Triple A hopes to get its risk management staff together with state officials in an effort to reach an agreement that will convince his company to provide coverage.
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