If you’re a homeowner and notice a drone hovering around your property, it might not be a curious neighbor with a new gadget. Instead, it could be your homeowners insurance company conducting an aerial inspection to determine if your house and surroundings comply with their policy requirements.
According to The Wall Street Journal, insurance companies across the United States are increasingly utilizing drones to capture aerial images of homes. This technology enables insurers to identify high-risk properties and avoid insuring them. The report highlights that “nearly every building in the country is being photographed, often without the owner’s knowledge.”
Beyond drones, insurers are also employing manned airplanes and high-altitude balloons to photograph properties from above. The Geospatial Insurance Consortium, funded by the insurance industry, boasts an airplane imagery program that covers 99% of the U.S. population, according to the WSJ.
In an April blog post, United Policyholders, a nonprofit advocacy group for insurance consumers, noted that some U.S. home insurance companies use drone surveillance to assess whether to insure homes. This practice has sometimes resulted in insurers denying coverage based on perceived structural issues identified through aerial imagery.
This new approach aims to eliminate high-risk policies, according to United Policyholders, but it has sparked frustration among customers and even some insurance company employees. Amy Bach, executive director of United Policyholders, told the WSJ, “We’ve seen a dramatic increase across the country in reports from consumers who’ve been dropped by their insurers on the basis of an aerial image.”
The insurance industry defends the use of drones and surveillance planes, arguing that they help companies respond more quickly to disasters and set rates that more accurately reflect a property’s risk. Allstate CEO Tom Wilson told the WSJ, “If your roof is 20 years old and one hailstorm is going to take it off, you should pay more than somebody with a brand-new roof.”
Despite consumer pushback, drones and aerial photos are likely here to stay. Here are four key aspects insurance companies scrutinize with drone images and how they could impact your costs:
- Roof Problems:
One of the primary concerns for insurers is the condition of a property’s roof. Aerial photos can reveal issues such as discoloration or streaking, which might indicate underlying problems. Homeowners may need to invest in repairs or replacement, which typically costs between $6,000 and $13,000 or more, or risk losing their insurance coverage. Identifying and addressing roof problems early can prevent costly damages and maintain coverage. - Overhanging Trees and Tree Limbs:
Overhanging trees and limbs pose significant insurance risks as they can fall and cause damage during storms. Insurers may require homeowners to trim or remove these trees to mitigate potential hazards. The cost of tree removal varies, with prices ranging from approximately $200 to $2,000, according to Angi. Maintaining your property by managing tree growth can prevent damage and help you retain your insurance coverage. - Undeclared Trampolines:
Trampolines are often considered a safety hazard and are not typically covered under standard home insurance policies. If a drone captures an undeclared trampoline on your property, you may need to remove it or seek a third-party insurer for trampoline coverage. Neglecting to declare such recreational equipment can lead to higher premiums or denial of claims related to trampoline injuries. - Excessive Yard Debris:
Yards cluttered with excessive debris are seen as safety hazards, increasing an insurer’s liability. Drone footage capturing debris in your yard could lead to a notification from your insurer to clean up the area. Failure to do so might result in losing your insurance coverage. Regular yard maintenance not only enhances the aesthetic appeal of your property but also helps maintain a favorable insurance profile.
The adoption of drone technology by insurance companies marks a significant shift in how properties are assessed for risk. While this may streamline the process and allow for more accurate risk evaluation, it also places additional responsibilities on homeowners to maintain their properties meticulously. By staying proactive and addressing potential issues identified through aerial imagery, homeowners can avoid unexpected costs and ensure their properties remain insurable.
As the use of drones in the insurance industry continues to evolve, homeowners should stay informed about these practices and understand how they can affect their insurance coverage and premiums. By keeping properties in good condition and addressing potential risks promptly, homeowners can mitigate the impact of these aerial inspections on their insurance policies.
