They’re watching: Why insurance companies are using drones & satellites to monitor homes
Over the past decade, insurance companies have been employing drone and satellites technology to gather data on their policyholders. Industry juggernauts such as Allstate and Liberty Mutual have sent out drones to gather data on individuals with homeowner’s insurance, according to technology company Intellias.
Are insurance companies allowed to do this? In certain circumstances, yes, says Aaron VanTuyl, communications and social media manager with the Washington State Office of the Insurance Commissioner in an email to The News Tribune.
VanTuyl and other insurance experts explain ways insurance companies can carry out a homeowner’s inspection without having to be physically present.
Can insurers use satellites to look at my home?
VanTuyl states that insurance companies can use a satellite to evaluate a roof. This technology is typically used during a post-loss roof evaluation to measure a roof’s parameters. Opting to use a satellite saves a roof adjuster, or a person who investigates an insurance claim, from having to climb onto an insurance holder’s roof in person.
VanTuyl adds that insurers can underwrite and assume any property risk they’re willing to accept. Using satellites, he said, is one option they can use to assess any liabilities of their policyholders.
Why are insurers using drones?
Satellites aren’t the only pieces of remote technology insurance companies are using to gather data. As Intellias points out in a 2022 online post, drones provide a cost-effective and time-efficient way for insurers to assess a home’s damage or liabilities without having to send a company representative to anyone’s doorstep.
The technology site says that using remotely-operated technology also returns companies with better data and allows for more proactive risk monitoring. The technology is equipped with infrared cameras that are effective at detecting water and air leaks, liabilities that would take an adjuster much longer to find.
When does an insurance company do a home inspection?
Whenever a person takes out a policy with an insurance company, the organization is going to want to know how much risk they’re taking on with their property. Therefore, the insurer may want to see a home’s condition firsthand.
Insurance research site ValuePenguin states that insurance companies may request to inspect a policy holder’s home, but it isn’t required. Typically, companies are likelier to perform an inspection on your home if it:
Is more than 25 years old
Is newly insured
Hasn’t been inspected by an insurance company in 10 years
Is in a high-risk area susceptible to natural phenomenon like hurricanes, wildfires and hailstorms
If your insurance provider requests a home inspection, policyholders have the right to refuse. However, the insurance company may respond by increasing your rate or outright canceling your policy.
How insurers do home inspections
ValuePenguin says that companies and policy owners can perform several kinds of inspections depending on your policy and home’s age:
Exterior home inspection: This is performed on the street or on a property to assess the home and any other structures like sheds, fences or pools. New home insurance policy owners are likely to get this inspection.
Virtual home inspection: Insurance companies can perform this remotely via satellite images or drones. Homeowners can also take pictures and videos and submit them on an app to complete the virtual inspection.
Four-point inspection: The purpose of this inspection is to check a home’s roof, electrical plumbing, heating system and cooling system. This inspection is more common for older homes.
- Full inspection: This procedure consists of an examination of the home’s interior and exterior for safety and potential liabilities. Systems like plumbing and electrical are inspected. High-value homes usually get these inspections.
This story was originally published July 24, 2023 at 11:52 AM with the headline "They’re watching: Why insurance companies are using drones & satellites to monitor homes."
