Drone and Satellite Inspections in California Home Insurance

Published Date: 04/29/2024

Homeowners across California are discovering a new twist in their insurance renewal process — one that’s happening hundreds of feet above their homes.



In a recent CBS 8 (KFMB San Diego) report, anchor Marcella Lee and reporter Shannon Handy revealed that major insurers are now using drones and satellite imagery to inspect properties before deciding whether to renew, cancel, or adjust coverage. The practice is reshaping underwriting in a state already strained by an insurance availability crisis.

“The practice of looking at homes and properties before renewal isn’t new,” insurance expert Karl Susman explained. “What’s new is the way they’re doing it — and it feels a little bit creepy.”

From In-Person Inspections to Aerial Technology

In the past, homeowners might see a field inspector visit their property every few years with a clipboard, taking photos of the roof and yard. That model is rapidly disappearing.

Today, insurers increasingly rely on aerial imagery collected by drones, aircraft, and high-resolution satellites to evaluate risk remotely. These images are used to justify renewals, premium increases, and in some cases, non-renewals.

“In San Diego, companies are now using drones and other technology to survey your property before deciding whether to insure it or not,” Handy reported.

This shift reflects a broader industry pivot toward AI-driven underwriting and remote inspections — technologies once reserved for catastrophe modeling and claims verification that are now applied to routine policy renewals.

Why Homeowners Say the Process Feels Invasive

For many homeowners, the idea that insurers may be quietly capturing images of their property from above feels unsettling.

“It’s just the idea — it feels a little awkward, a little weird, a little strange to not know when it’s happening,” Susman said.

The technology allows insurers to detect details homeowners might never notice themselves, such as:

• Missing or cracked roof tiles
• Overgrown tree branches touching the roof
• Yard debris or clutter
• Drainage or pooling issues

In one reported case, a CBS 8 employee received a notice that satellite images showed moss on their roof, along with a warning that their policy could be canceled if the issue was not corrected. Another homeowner said a drained swimming pool was cited as a maintenance problem based on drone imagery.

Deferred Maintenance as a Trigger for Non-Renewal

At the center of this practice is a concept known as deferred maintenance — visible deterioration or neglect that could increase the likelihood of a claim.

“What we’re seeing is companies that are, at renewal, going and looking at the risks they already insure to determine if there’s what’s called deferred maintenance,” Susman explained. “For example, roof wear, drainage issues, or yard debris.”

Under current California regulations, the outcome is often binary.

“Right now, it’s all or nothing,” Susman said. “You must have it fixed, or you can’t have the policy.”

As a result, even minor issues such as cracked shingles, cluttered side yards, or tree branches touching a roof can trigger non-renewal notices if not resolved quickly.

Rising Consumer Complaints and Transparency Concerns

Consumer advocacy groups report a sharp increase in complaints from homeowners whose policies were affected by aerial inspections.

A spokesperson for United Policyholders told CBS 8 the organization has received “a dramatic increase in reports” from consumers who were dropped or warned based on drone or satellite imagery — often without knowing imagery had been used at all.

While insurers have long inspected properties, advocates argue the scale and secrecy of this new approach raises serious transparency issues. They are calling for clearer disclosure requirements and a defined opportunity for homeowners to challenge or correct aerial findings before policies are canceled.

How Regulatory Changes Are Driving This Shift

Susman believes the timing of the surge in drone inspections is directly tied to California’s upcoming insurance reforms under the Sustainable Insurance Strategy.

Later this year, insurers are expected to gain new flexibility to use forward-looking catastrophe models and to offer underwriting discounts for documented mitigation work.

“More than anything,” Susman said, “they’re gearing up for home insurance regulations to change by the end of the year, which will allow them to offer underwriting discounts.”

For now, repairs are mandatory to keep coverage. Under the new rules, the system is expected to allow a more graduated approach.

“The only difference,” he explained, “is that right now it’s all or nothing — fix the issue or lose coverage. With the new regulations, you’ll have a choice: pay more by not fixing your roof, or get a discount for having a new one.”

Data-Driven Discounts and the Future of Pricing

Under the coming reforms, aerial inspections could eventually support individualized pricing rather than blunt enforcement.

Homeowners may qualify for premium incentives by making visible improvements such as:

• Installing Class A fire-resistant roofing
• Maintaining defensible space
• Clearing debris from gutters and yards
• Upgrading drainage systems
• Adding ember-resistant vents or screened soffits

“The overall goal of this practice is to not have a claim,” Susman said. “Insurance companies are letting go of more and more customers because they can’t afford the risk. Prevention is the only sustainable solution.”

What Homeowners Should Do Right Now

For Californians concerned about aerial inspections and non-renewals, experts recommend a proactive approach.

Maintain Your Roof and Yard
Inspect your roof regularly for moss, missing shingles, or visible wear. Clear vegetation and debris that could be interpreted as neglect.

Document All Maintenance
Take dated photos before and after upgrades or repairs. Keep digital records ready to submit at renewal.

Respond Immediately to Notices
If your insurer flags an issue, correct it quickly and send proof. Once a non-renewal notice is issued, appeal options are limited.

Talk to Your Agent or Broker
An agent may help clarify misunderstandings or request short extensions. Independent brokers can explore alternative or specialty markets if needed.

Assume Aerial Reviews Are Standard
Drone and satellite inspections are quickly becoming routine. Until disclosure rules change, homeowners should assume their property may be reviewed remotely at each renewal.

Privacy and the Limits of Technology

While aerial images captured from public airspace are generally legal, many homeowners feel the practice blurs ethical boundaries — especially when data is collected or analyzed without notice.

As geospatial technology becomes more central to underwriting, pressure is building for clearer privacy standards and usage rules.

“I get it — it feels a little bit creepy,” Susman said. “But ultimately, the goal is to prevent loss. It’s not personal; it’s predictive.”

Regulators and consumer groups are increasingly focused on ensuring these tools are used fairly and transparently.

A Glimpse Into the Future of Underwriting

California is not alone in this shift. Across the country, insurers are adopting geospatial analytics and AI systems to evaluate wildfire exposure, roof aging, flood proximity, and structural vulnerability at massive scale.

Algorithms can now analyze millions of homes in seconds, replacing traditional field inspections with continuous remote risk scoring.

“It’s just a question of how it’s implemented,” Susman said. “Once the new regulations are in place, we’ll see whether these tools are used to penalize or to reward.”

The Bottom Line

The rise of drone and satellite inspections marks a major turning point for homeowners insurance in California.

While the technology raises real privacy and fairness concerns, it also points toward a more data-driven and potentially more resilient insurance market. For now, the best defense for homeowners is vigilant maintenance, clear documentation, and fast response to any insurer notices.

“If your insurer points out an issue, fix it and document it immediately,” Susman advised. “Because right now, carriers don’t have the option to underwrite based on conditions — it’s all or nothing until the new regulations take effect.”

As California works to rebuild a sustainable insurance market, this kind of aerial risk assessment is likely to become the norm. The challenge ahead will be ensuring that innovation protects consumers as much as it protects insurer balance sheets.