Insurance Companies Spying With Drone
Drones have become increasingly common in recent years, yet many Amercians see them as invasive and an invasion of personal privacy.
Source: Freepik
According to The New York Post, this hasn’t stopped insurance companies from using them to assess potential clients’ risk factors.
Angered Homeowners Refused Insurance
The aerial footage captured by the drones has led insurance companies to refuse coverage to potential customers and even cancel already issued policies.
Source: Freepik
According to angered customers, they have been refused coverage as the drones spotted minor damage to roofing tiles, trash and debris in their yard, and undeclared items such as trampolines or swimming pools.
No Home Is Safe
The mapping of homes around the US using drone footage was completed by the Geospatial Insurance Consortium.
Source: Freepik
The GIC is an industry-funded group that has collected aerial photographs of around 99% of American homes.
Drone Footage Leads to Many Americans Losing Coverage
Speaking with The Wall Street Journal, Amy Back, executive director of United Policyholders, reveals that drone footage has led to many Americans losing their home coverage.
Source: Wikimedia
“We’ve seen a dramatic increase across the country in reports from consumers who’ve been dropped by their insurers on the basis of an aerial image,” she said.
California Resident Loses Home Insurance
A woman from Northern California is among the many who have suffered due to drone footage.
Source: Freepik
In March, Cindy Picos lost her coverage after her insurer claimed the roof of her home had “lived its life expectancy,” per WSJ.
Insurance Company Outright Refuses Reconsideration
The news shocked Picos, as she had recently hired a home inspector who had assured her the roof was good for at least another decade.
Source: Freepik
When the Californian resident asked her insurer to reconsider, they outright declined her request and even reused it to provide her with the images they used to cancel her insurance. Picos called this decision “absolutely wrong.”
Major Insurance Firms Hit Back at Drone Privacy Claims
Major insurance firms from the state hit back, claiming home inspections are part of the policy agreement and all customers consent to them when they sign up for coverage.
Source: Wikimedia
They went on to argue aerial footage from drones is much less invasive than sending an inspector to the home.
CEO Claims Some People Should Have to Pay More
According to Tom Wilson, CEO of Allstate, one of California’s largest insurance companies, some Americans should pay more for insurance.
Source: Freepik
“If your roof is 20 years old and one hailstorm is going to take it off, you should pay more than somebody with a brand new roof,” he said.
Privacy Concerns
Not everyone in the insurance industry agrees with the use of drone footage. Many see it as a breach of customers’ privacy, and it has even forced some employees to quit their jobs.
Source: Freepik
“It’s like they’re using anything as an excuse to get people off their books,” said Nichole Brink, who formerly worked for Farmers Insurance.
An Orwellian Nightmare
Pearson suggests it could get much worse in the future. As drone technology increases, so will the quality of the footage, says the former Farmers Insurance Employee.
Source: Freepik
“It could get interesting from a privacy standpoint as…a property could be monitored daily at high resolution,” he said. “It is a bit Orwellian,” he added.
The Future of Insurance
As things stand, it’s clear a strong divide exists between customers who, on the one hand, believe their privacy has been breached and are unhappy with the use of drones in their home assessments.
Source: Freepik
Insurance companies, on the other hand, are under the impression that aerial footage results in a thorough inspection. As for now, it appears the drones are here to stay.