Your home insurer might be watching your property from above — and what it says it sees could cost you.
Insurance companies increasingly rely on aerial photography and drone imagery to assess homes, and the practice is catching some homeowners off guard.
According to The Zebra, a home and car insurance policy comparison website, these bird’s-eye views can lead to rate hikes or even policy cancellations.
Read on to learn how insurers use this technology and how aerial images could play a role in underwriting decisions and policy renewals.
2 scenarios that could raise your rates
Drone footage can trigger premium increases in two main situations.
First, if aerial images reveal property damage or maintenance issues — such as a deteriorating roof, missing shingles or overgrown trees — insurers may categorize your home as higher risk and bump up your premium accordingly.
Second, if the photos capture features that increase liability exposure, you could see higher rates. Swimming pools, trampolines and large decks all fall into this category, even if you weren’t aware they’d affect your insurance costs.
On the flip side, aerial imagery can work in your favor. If photos show recent improvements like a new roof or repaired siding, you might qualify for lower premiums or renewal discounts.
When insurers can drop you entirely
Some homeowners have lost their coverage altogether after aerial inspections.
Policy nonrenewals have occurred when drone or satellite images revealed roofs nearing the end of their lifespan, overhanging trees that pose storm risks, cluttered yards viewed as fire hazards or unauthorized structures like unpermitted sheds.
What’s unsettling is that homeowners have reported receiving nonrenewal notices based on drone photographs they never knew were being taken.
Those photos may not be accurate, either.
NPR recently reported that a homeowner in Texas nearly had her policy canceled due to her roof needing serious repair — at least according to the insurance company. But the roof was only a few years old and in good condition. And the insurance company would not provide images.
While drone imagery can help insurers assess properties, the use of it in policy renewals is relatively new and growing due to its cost-saving benefits. It can be cheaper to hire a third party to capture aerial images than to send out a home inspector.
And while insurers must notify you before canceling or refusing renewal in most cases, the notice period and acceptable reasons for nonrenewal vary by state.
What you can do about it
If your policy is affected by aerial photography, you have options.
Request copies of the images your insurer used to make its decision. Provide your own evidence showing completed repairs or recent inspection reports. Ask for a reinspection if you’ve made improvements since the original photos were taken.
If you believe your insurer acted unfairly or violated notice requirements, file a complaint with your state’s insurance department.
Keep your property well-maintained, both inside and out, so there’s nothing problematic for those eyes in the sky to capture.
And whether you’re satisfied with your current homeowners coverage or not, it’s smart to regularly compare rates. This online comparison tool from FinanceBuzz can help you see what’s available with just a few clicks.
Consider bundling too. Combining homeowners coverage with your auto insurance can unlock discounts that offset higher base rates.
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