Homeowners raise concerns over surprise cancellations based on outdated aerial property images.
Insurance companies in California are facing growing pushback from lawmakers and consumer groups after homeowners began receiving cancellation notices based on pictures taken from above. Drones and satellites have become tools for insurers to look at rooftops, yards, and home conditions without stepping foot on a property. While this approach is cheaper and faster for the companies, many homeowners have been caught off guard, especially when decisions are made using old or incorrect images, putting insurance drone practices into questions.
A new bill in California is trying to change how this practice is used. The proposal would make companies tell homeowners when aerial pictures are part of the review process. It would also require them to share those images if the homeowner asks for them. If a picture is more than six months old, it couldn’t be used to make any decisions. People would also have the right to ask for an in-person inspection if they believe a picture is wrong or misleading.
Some homeowners say they never knew pictures were being taken of their houses until they were told their policy wouldn’t be renewed. In some cases, the problem turned out to be a tree branch that had already been cut, or a damaged fence that had been repaired months earlier. The concern is that decisions are being made with no warning and no way for people to explain or fix the issue.
Insurance officials from the state have said that there’s not enough oversight on how drone images are being used. Some companies have reportedly made decisions based on pictures over a year old. There’s also concern that people have no way of knowing what’s being assumed from those images, or how much control they have over the information.
While the bill adds some protections, it doesn’t stop companies from taking pictures without giving advance notice. Homeowners also would not have the choice to say no to being photographed from above by insurance drones. That has raised more questions about privacy and how far insurance companies should be allowed to go.
Insurance companies have argued that the use of drones saves money. A regular inspection might cost up to $100, depending on where the property is located and what kind of structure it is. Aerial images cost much less. Some company representatives say that cutting out those costs keeps overall insurance prices from rising even more. They’ve warned that if the rules become too strict, they may have to limit how many policies they offer in high-risk areas.
Privacy groups have also spoken out, but for different reasons. They’re worried the pictures being taken could end up in the hands of data brokers. Once that happens, the images could be sold and passed around. That raises the risk of misuse by bad actors, from stalkers to scammers to people looking for homes to break into. Some groups have said the bill doesn’t go far enough in protecting people from having their data exposed. There are no rules in the bill about how long a company can hold onto images or whether faces, license plates, or nearby homes need to be blurred.
Lawmakers have said they understand the concerns and are open to adjusting the bill. For now, the proposal will move on to the next step in the process as it heads to another committee for further review. While the debate continues, homeowners across the state remain in a waiting game—unsure if their next renewal notice will come with a surprise photo they never expected to see.
Sources:
Lawmakers call for transparency from insurance companies using drone images
Your Insurance Company May Be Using A Drone To Spy On Your Property From The Air
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