Woman Claims Insurer Threatened to Drop Coverage Over Google Earth Photos
A woman in Illinois claims her insurer used photos from Google Earth to threaten to drop coverage.
Roseanna Castillo, who lives in Kane County, claims Allstate wrote a letter threatening to drop her homeowners insurance coverage because of “granular loss” on her roof.
To avoid losing coverage, Castillo would need to pay $18,000. Allstate gave her just 1.5 months’ notice to repair the issue or risk losing insurance.
In a letter to Castillo, Allstate claims they performed an ordinary property inspection and wanted to alert Castillo to a hazard that could affect coverage.
According to Allstate, the images were obtained as part of a “periodic inspection of insured property, which helps alert our customers to potential hazards that may exist on their property.”
“Granular Loss” on Aerial Images Could Lead to Non-Renewal
Allstate specifically mentioned “granular loss,” claiming it could “be a potential danger to you and others.”
Granular loss occurs on older shingles: over time, asphalt shingles shed mineral granules, leading to dark and bald spots and exposing the asphalt underneath.
If you’ve ever seen granules in gutters or downspouts, then you have symptoms of granular loss. It’s one reason why roofs need to be periodically replaced.
Allstate threatened “non-renewal of this policy” if Castillo was not able to demonstrate that “all condition concerns listed above have been addressed,” including documentation of repairs.
Castillo Was Told to Pay $18,000 Within 1.5 Months to Avoid Losing Coverage
Castillo was upset upon receiving the letter, describing it as an “unsolicited inspection” of her home in an interview with CBS News Chicago.
Although she declined to disclose the age or condition of her roof, Castillo felt the aerial inspection was an invasion of privacy.
“In order for me to keep my policy, they want me to pay $18,000 and they gave me like a month and a half’s notice to do this,” she said in her interview with CBS News Chicago.
In response to Allstate’s demand, Castillo contacted Allstate and warned that she was preparing for an interview with CBS. Soon after, Castillo received an ordinary renewal notice from Allstate with no mention of the roofing issue.
Some believe Allstate simply made a mistake – say, by using artificial intelligence to attempt to spot an issue with someone’s home. Others claim insurers are using drone imagery and aerial photography to bully policyholders without due cause.
Insurers Don’t Need to Give Notice Before Taking Drone Shots of Your House
Right now, insurers face few restrictions on their use of drones to survey policyholders’ property.
They don’t need to give notice before inspecting your property – say, your roof or backyard – with a drone.
Many insurers are even using artificial intelligence to review drone photography. Unmanned drones take photos, AI reviews those photos for anomalies, and insurers make underwriting decisions based on the perceived risk.
In this case, Allstate appears to have used Google Earth photos – not drone imagery – to threaten Roseanna Castillo with non-renewal.
In a statement to CBS News Chicago, Allstate didn’t specify which type of aerial imagery it uses to make underwriting decisions. However, Allstate vaguely claims it used “aerial imagery” without using drones:
…To clarify, drones and AI were not used in this process. We used aerial imagery to enhance the customer experience…
Some, including CBS News Chicago, have taken this to mean Allstate is using imagery from Google Earth or other sources to make underwriting decisions.
Is Aerial Risk Analysis Good or Bad for the Insurance Industry?
Theoretically, aerial risk analysis – say, from drones or satellites – can be a good thing.
Insurers can reduce costs, analyze risk more effectively, and make the insurance marketplace more efficient overall.
They’ll pass savings onto policyholders. Low-risk policyholders pay lower premiums and high-risk policyholders pay higher premiums.
Drones and aerial imagery are also safer and less invasive. Instead of having an insurance company employee come to your home and physically stand on your roof, insurers can inspect many homes non-invasively in a single day.
According to the Insurance Information Institute, as reported by CBS News, insurers can use drones for good:
Insurers are using drones to make the home inspection and underwriting process more efficient and cost-effective. Additionally, conducting aerial inspections is much less intrusive and safer than sending an inspector to each home and having them climb on your roof.
Critics, however, are warning against privacy violations and overreach.
What happens if an insurer spots something they shouldn’t spot in your backyard? What happens when drones start using thermal imagery to look behind walls? What’s stopping an insurer from using drones to peek into windows when you’re not home to analyze risk?
More Homeowners Receiving Drone-Related Cancellation Notices
Roseanna Castillo is one of several homeowners who have received non-renewal warnings from insurers over aerial imagery.
Earlier this year, ClaimsMate highlighted a story by Austin’s KUT News that found Texas insurers were increasingly using drones and aerial footage to analyze risk.
The state of Delaware, meanwhile, recently made it illegal for insurers to use drones to cancel policies.
Insurers will use whatever technology is available to become more efficient. As drones and aerial imagery become more available, expect stories like Roseanna Castillo’s to become more common.
Full credit for Roseanna Castillo’s story goes to CBS News Chicago.
