If you’ve been curious about whether your home insurance company could be spying on you, we’ve got answers. What if we told you that aerial images of your home are possibly being captured right now? It’s possible, and unfortunately, the reality for many people across the country, including Tracy Gartenmann of Texas. KUT News recently reported that Gartenmann had been notified that her home was photographed via aerial imaging without her knowledge, from an email she received from a Travelers Insurance representative. Not only did this email inform her about the images captured without her knowledge, but also about the fact that her more than decade-long home insurance coverage policy might not be renewed if an issue she didn’t know existed was not fixed within two months.

Ahead, consumer advocacy experts, insurance professionals, and lawyers explain coverage renewal processes and whether or not your home insurance company could be spying on you (and how). They also explain what can happen if an insurance company makes a mistake.

How Do Home Insurance Companies Assess Whether They’ll Renew Coverage?

Home insurance companies consider many factors when assessing whether they’ll renew coverage. Erika Tortorici, the owner and principal of Optimum Insurance Solutions, explains that many insurance companies examine a homeowner’s payment history (including late or missed payments), previous claims, and the current property condition. Michael DeLong, a research and advocacy expert with the Consumer Federation of America, adds that one’s credit score can also impact whether or not home insurance companies renew coverage. Although it is unfortunate, DeLong notes that climate change is currently having a growing influence on whether or not insurance companies renew coverage.

Since home insurance companies and coverage is not one-size-fits all, Michael R. Naimy, Esq., a partner at Claims Advocacy Center, licensed in Florida, Michigan, and Missouri, notes that it is a best practice to speak directly with your insurance agent to learn more about the specific renewal criteria for your plan. Put simply, “Keeping the home well-maintained, making timely payments, and limiting non-essential claims can improve the chances of renewal,” explains Tortorici.

Do Homeowners Insurance Companies Spy On You?

While most homeowners insurance companies may not spy on you, many are often collecting personal information about you and those who live within your home. “Homeowners insurance companies collect a lot of information about their policyholders, and attempt to slice and dice them into many different categories,” says DeLong. “This includes information about the houses but also the people themselves, including their economic situation.”

Furthermore, homeowners insurance companies may be “spying” on you via surveillance of your home to evaluate risk. “Some insurers do use technology like drones or satellite imagery to assess property conditions, particularly when issuing a new policy or reviewing a renewal,” says Tortorici. “They may use this technology to look for things like overhanging trees, roof damage, or signs of neglect that could increase the likelihood of a claim.”

While there’s a high likelihood that you may have signed off on this image-taking when enrolling in your policy, that doesn’t mean it can’t feel violating and as though your home insurance company could be spying on you, especially if you’re not made aware of any image taking or surveillance that may occur.

Which Companies Employ These Tactics?

According to KUT News, some insurers in Texas, Florida, North Carolina, and Pennsylvania (and California) are employing these tactics when it comes to homeowners insurance renewals and oftentimes through third-party companies. That said, not all companies employ tactics like aerial and drone technology (and not in every state). While Travelers Insurance and Nationwide have confirmed usage, Only Travelers and State Farm have denied using drones.

Do Insurers Use AI to Assess Insurance Claims and Renewals?

Whether or not insurers use AI to assess insurance claims and renewals depends on the insurance company and location. The extent to which AI is used also varies. That said, KUT News notes that many homeowners insurance companies employ third-party companies who use AI to scan aerial images and evaluate homes and roofs based on the perceived level of risk when it comes to homeowners insurance policy renewals.

NAIC notes that out of the 194 home insurers that responded to a survey by the Working Group, 70% “reported they use, plan to use, or plan to explore AI/ML models in their operations.” Whether or not insurers use AI to assess insurance claims (and in what capacities) is more of an ambiguous question to answer.

What Happens If the Insurance Company Makes a Mistake?

As is the case with any other industry, mistakes can happen in the homeowners insurance industry (as was the case with the homeowner who was denied coverage by Nationwide after the wrong aerial report was reviewed). That said, the repercussions of mistakes and how they are handled can vary depending on the circumstances. As for the Nationwide mistake previously mentioned, the state was asked to investigate. “Some states have bad faith statutes which may allow the policyholder to recover damages resulting from the insurance company’s activity during the claims handling process,” explains Naimy. Tortorici notes that minor mistakes can oftentimes easily be fixed.

What Now?

As the use of aerial imagery and AI is being brought to light in the homeowners insurance category, consumers are not happy. DeLong notes that some states, such as California, are proposing bills that would force insurance companies to provide homeowners with a 30-day notice (minimum) before taking aerial images in addition to granting homeowners access to copies of the imaging.

Some homeowners are even taking some insurance companies to court who have canceled their policies over false aerial photos.

About the Experts

  • Michael DeLong, is a research and advocacy expert with the Consumer Federation of America.
  • Erika Tortorici, is the owner and principal of Optimum Insurance Solutions.
  • Michael R. Naimy, Esq., is a partner at Claims Advocacy Center, licensed in Florida, Michigan, and Missouri.

Sources

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Jenna Clark
Jenna Clark is a freelance writer for The Family Handyman. She specializes in lifestyle and commerce content. She's a lover of DIY projects and interior design. If she's not at a store buying new decor pieces for her apartment, she's usually browsing them online. Jenna also writes freelance pieces for other outlets including Insider, Women’s Heal...
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