California and Texas homeowners are finding out the hard way that what's visible from the sky could result in losing their home insurance. More insurance companies are using aerial images and footage from satellites and drones to decide whether to renew a policy, and it has nothing to do with wildfire zones.
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Surprise Notices From Above
In California, KGO-TV reported in 2023 that long-time AAA customers are being dropped for reasons like backyard clutter, old roofs or even empty swimming pools. In one case, CJ Sveen of Oakley said AAA told him his policy wouldn't be renewed because of “debris and hazards” in his yard.
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“Apparently, they have some pictures and they noticed clutter,” Sveen told KGO-TV. “I find that offensive. How dare you judge me because of my stuff!”
Sveen said he had no chance to fix the issue. “There was no chance to mitigate, clean up, do anything, it was just, you're fired.”
Another homeowner, George Nadeau of San Rafael got dropped because AAA said his roof had “exceeded its useful life.” But Nadeau says that wasn't true.
“I think obviously that their drone surveillance was bogus,” he told KGO-TV. “We've lived in this house for 50 years and have maintained our roof in a very effective way.” He said he installed a new roof seven years ago and even spent $4,000 on an upgrade later on.
He submitted invoices and photos to prove the roof had been replaced and upgraded. After his appeal, AAA reinstated his policy.
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Marilyn Smith and her husband in Northern California were dropped for draining their pool to conserve water. They now use the empty pool as a hothouse to grow potted tomatoes and lettuce.
“I think I was in so much shock, I couldn't believe it,” she told KGO-TV. The AAA notice cited “deferred maintenance” due to the empty pool.
“We decided well, we don't use it… that saves us on maintenance and then just the water,” she said.
In a statement to KGO-TV, AAA parent company CSAA Insurance Group said it uses aerial imagery from satellites and fixed-wing aircraft to assess properties and determine whether they meet underwriting criteria. “To continue offering industry-leading insurance coverage, we must periodically evaluate our exposure to risk,” the company said.
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Same Trend Playing Out In Texas
KUT in Austin, Texas, reported just last month that this drone surveillance policy continues. Tracy Gartenmann got an email from insurance company Travelers telling her she had two months to trim her trees or lose her coverage. Attached were two blurry photos taken from above her home.
“I thought it was a scam,” Gartenmann said. “It wouldn’t have crossed my mind that that would’ve been a mechanism or technique that a corporation could use.”
Alaina Callahan, who lives outside Houston, was told she needed a new roof even though hers was just five years old and in good condition. She never got to see the photos.
“I had no recourse as a homeowner. None whatsoever,” she told KUT.
Consumer advocacy group Texas Watch told KUT that the use of aerial images and AI removes the human touch and increases the risk of error. In one case, a homeowner lost coverage because the company used the wrong house image.
KGO-TV reported that some homeowners have been able to find new coverage, often through insurers catering to military families. Others, like Nadeau in California, got reinstated after pushing back and sending documents about their roof being in good condition.
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