When Space Photos Decide Your Insurance Fate
Liberty Mutual’s decision is a perfect example of how technology—while often helpful—can backfire when used improperly or without human verification. In this case, the satellite image led to a completely incorrect conclusion about the state of the Colemans’ roof.
Here’s the thing: insurers are increasingly using aerial photographs, drones, and even AI to evaluate homes. I wrote about this back in May, covering the practice of using drones to conduct property inspections without homeowners even knowing. While these tools can help insurers assess homes in hard-to-reach places or in disaster-prone areas, they can also lead to inaccurate assessments like the one the Colemans are facing.
The problem is, homeowners like the Colemans often have limited recourse. Once a decision is made, reversing it can be nearly impossible. Even after the Colemans hired a roofer to inspect their home and confirm that everything was in order, Liberty Mutual refused to change its stance.
As Anthony Coleman put it, “They’ve made up their mind, and they’re sticking with it, regardless of the facts.”
Why Are Insurers Dropping Long-Time Customers?
If you’ve noticed more and more homeowners being dropped by their insurance companies, you’re not alone. It’s happening across California, Texas, Florida, and other high-risk states. Insurance companies are increasingly looking for ways to reduce their financial exposure, and dropping long-time customers is one way they do that—especially in disaster-prone areas.
Liberty Mutual isn’t alone in this practice, and, frustratingly, it’s entirely legal. Under California Insurance Code Section 676, insurers are required to give homeowners at least 75 days’ notice before non-renewal, along with a specific reason for the decision. Unfortunately, for the time being, a satellite photo apparently qualifies as a “specific reason.”
This situation underscores the growing tension between homeowners and insurance companies. On the one hand, insurers are trying to cut costs and reduce risk; on the other, homeowners are left feeling helpless as technology—something they can’t even control—makes decisions about their coverage.
