Danielle Hale Chief Economist | realtors.com
A couple in California, Janice and Anthony Coleman, faced an unexpected situation when their long-term insurance provider, Liberty Mutual, decided not to renew their policy. The company cited an image that purportedly showed "mildew, moss, algae and mold growth" on their roof. However, the Colemans argue that the image actually depicted solar panels.
Despite hiring a roofer to verify the condition of their roof, Liberty Mutual maintained its decision. "I feel they made a decision based on technology just to reduce their portfolio and to offload our property as they are doing with thousands of others in the state of California," said Anthony Coleman.
The couple eventually secured a new insurance policy but at a higher cost. Janice Coleman expressed her dissatisfaction: “For being customers of 20 years, this is really a bad way to be treated.”
This incident highlights a growing trend among insurance companies using aerial technology for property assessments. Alex Adekola from ReadyAdjuster noted that drones are frequently used for capturing imagery. Alex Burgess from Hi Marley added that such technology helps improve underwriting accuracy by assessing various risks.
Catherine Lane from SolarReviews.com pointed out that reliance on automation could pose risks for homeowners beyond those with solar panels. Nichole Brink, formerly with Farmers Insurance, mentioned insurers dropping clients based on outdated aerial images.
Insurance advocates suggest aerial surveillance might lower rates by identifying high-risk properties. Jameson Tyler Drew of Anubis Properties remarked on the increasing use of desk reviews for policy decisions amid financial pressures due to extreme weather events.
Several insurers have reduced operations or ceased issuing new policies in California due to wildfire risks and financial losses from severe storms amounting to $59.2 billion last year alone.
Homeowners facing similar issues are advised first to request the disputed images from their insurer and seek corrections if necessary. Filing complaints with state insurance regulators may also be an option if disputes arise.
Preventive measures like maintaining property cleanliness can help avoid negative outcomes during aerial inspections. As Adekola emphasized, ensuring your property is appealing to insurers is crucial since they ultimately decide coverage eligibility.
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