A home insurance drone spied on my house, then my premium went up – could your policy be at risk too?

Despite living near hurricane-prone Daytona Beach, FL, Mike Arman hasn’t had a home insurance claim in 52 years. So he was shocked when, two years ago, his insurance company didn’t want to renew his policy.

The problem? According to Arman’s broker, the insurer had taken an aerial image of Arman’s roof and decided it “appeared to be deteriorating”.

Arman, after reviewing the image in question, said the grain looked like it had been shot by a distant satellite, a century ago no less.

“The picture looked like it was taken in 1936,” he recalled to Realtor.com®.

However, Arman says his roof is only 6 years old. Roofs of his type generally last 20 or 30 years, even in Florida. When he asked the insurer to send someone over to look at him, he says he was told, “We don’t make phone calls.”

A few months later, despite sending his insurance company proof of the age of his roof, Armani’s policy was cancelled.

Arman then found cover with a state insurer called Citizens. He also hired a home inspector who declared that his roof was in good shape.

However, when his policy came up for renewal, Arman learned this another one The aerial photo of his roof – this one taken by a drone – had also shown a vague problem that citizens would not elaborate on.

When Citizens renewed its policy, it was at a 25% increase. Was it the drone’s fault?

Dramatic increase in aerial surveillance

While satellite imagery and drones may sound like the stuff of James Bond movies, the reality is that these tools are increasingly being used by home insurance companies to inspect homes.

But this may not necessarily be a bad thing.

Mark Friedlander of the Insurance Information Institute, an insurance-funded research group, strongly disputes the idea that aerial surveillance by insurance companies constitutes “spying.”

“It’s a much less intrusive way to inspect your home than sending an individual out to your property,” he points out to Realtor.com, noting that aerial photography is more accurate and safer than human inspection.

He also insists that most insurers will let customers know what day the inspection is scheduled and give them a chance to correct issues and appeal non-renewals.

But Nichole Brink, a former Farmers Insurance agent who left the agency in protest of its surveillance policies, told the Wall Street Journal that the insurer was letting customers go on aerial images that were 2 or 3 years old, and on one occasion he even scored a home run. for overhanging tree branches that turned out to be shade.

Friedlander admits that aerial surveillance can make mistakes, but that it is “10 to 20 times” more accurate than human inspections. Plus, he adds, insurers removing risky properties leads to lower premiums for everyone.

How to protect your home from security drones and surveillance

So is there anything homeowners can do to counter this increase in aerial surveillance? Some say homeowners should pressure their legislators for change.

“There is a need for updated insurance regulations,” says Albert Fox Cahn, founder of the Surveillance Technology Oversight Project, a privacy think tank. “State law has not caught up with the technology.”

Cahn had his own frustrating experience when he almost fell off his hauler after AI spotted moss on his roof in the Hudson Valley — a problem he says he fixed months ago.

What saved him was not his insurer’s admission of wrongdoing, but that it had neglected to send him a warning notice, which was in violation of state law. But he’s worried he’ll hit non-renewal next year.

If your insurance company is threatening to drop you on air surveillance, Cahn advises fighting back. Ask to see aerial photos, ask to know exactly what the problem is, and ask for a chance to fix it.

He doesn’t recommend doing anything drastic like blocking the view of your roof or patio.

“It will make you flag, just in a different way,” he says.

Ultimately, he thinks the case will be settled in court.

“We need updated court rules for the age of AI,” he asserts.

Until that happens, there are other ways homeowners can protect against AI-powered policy cancellation.

“Talk to your insurance agent,” advises Friedlander. “Tell them, ‘I understand that my insurance company may be doing an air inspection. What can I do to avoid problems and what are they looking for?'”

Typical red flags include tree branches hanging over a house, debris on the roof, and undeclared pools. He also recommends removing the backyard trampoline. While the kids love them, insurers don’t.

“Be proactive,” he says. “Don’t wait until you get a letter saying your policy won’t be renewed.”