After receiving multiple inquiries about the use of aerial images in property i
nsurance nonrenewals, West Virginia’s insurance commissioner has posted
guidelines for insurers’ use of the technology.
In a bulletin this month, Commissioner Allan McVey reminded insurance companies that aerial imaging has its limits.
“While aerial imagery can provide benefits when used appropriatel
y, its misuse can result in inaccurate decisions and consumer confusion,” M
cVey noted. “For example, aerial imagery can be misused if an insurer relies
upon aerial images that are vague, not recent, show the wrong structure or proper
ty, or do not clearly show damage or disrepair.”
The bulletin said carriers and adjusters should follow three main guideposts
when using aerial devices for nonrenewals, cancellations, underwriting and claims:
Aerial imagery should be only one tool in the toolbox. Images that are old or
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blurry, purportedly showing roof damage, are not enough to indicate the roof mu
st be replaced. The insurer should provide a closer inspection and obtain
more recent information.
Insurers should notify homeowners before nonrenewal action is taken and if aerial images were used to make the determination. Home
owners should be provided with copies of the images and should be allowed to provide their own photographs and a
chance to dispute the accuracy of the insurer’s images. “If a homeowner files a complaint with the OIC, the home
owner will be entitled to view evidence relied upon by the insurer in making the nonrenewal or cancellation determination,” the bu
lletin reads. Many consumer complaints are based upon a lack of communication, and many can be resolved when insureds can review the evidence, McVey said.
Insurance companies should use only recent images and should not re
ly on aerial photos or footage that are out of date and may not reflect recent changes to the property.