California’s insurance crisis is evolving — and now, it’s taking flight.
With wildfire season approaching, thousands of homeowners are receiving non-renewal notices without a single inspector ever setting foot on their property. Instead, insurers are increasingly relying on aerial imagery and drone technology to decide whether a home is worth the risk.
As ABC 10’s Jeannie Nguyen reported in her segment “Get Used to Having Your Home Inspected from the Sky,” this high-tech shift is rapidly transforming underwriting across the state — and raising serious questions about privacy, fairness, and transparency.
“Companies are still dropping people’s policies,” Nguyen said, “and some are getting notices without anyone even coming to their home. Inspections are being done by air.”
The New Normal: Home Inspections by Air
ABC 10 highlighted drone footage over a Roseville neighborhood to demonstrate how routine aerial inspections have become.
“For many home insurance companies, inspections by air are becoming a way of doing business,” Nguyen reported.
Major insurers including AAA, State Farm, Liberty Mutual, and Allstate now use drone and satellite imagery to evaluate property conditions before renewal. These inspections often occur without the homeowner’s direct knowledge.
AAA told ABC 10 it relies primarily on third-party fixed-wing aircraft and satellite imagery rather than drones. However, industry experts confirm that drones are increasingly being used by other carriers, particularly in high-risk areas.
“They’re flying drones over neighborhoods to get an idea of the conditions that might exist,” said insurance expert Karl Susman.
Why Insurers Are Replacing Traditional Inspections
For decades, insurers depended on in-person inspectors to photograph roofs, measure defensible space, and evaluate general property maintenance.
But as California’s insurance market strains under wildfire losses, inflation, and regulatory delays, companies are seeking faster and cheaper ways to manage risk.
“AAA, like a lot of insurance companies, are utilizing new technology to simplify the underwriting process,” Nguyen explained.
Aerial inspections allow insurers to:
- Survey large areas quickly and consistently
- Reduce the cost of physical inspections
- Identify hazards before renewal
- Collect precise data for underwriting decisions
“It’s a less costly approach for the insurance companies,” said Aurora Mullett, managing partner of Sky Insurance in Rocklin. “They can get an overall look without sending someone out.”
When Drone Data Determines Your Coverage
For many homeowners, the biggest concern is not just the technology — it’s how the results are being used.
Susman acknowledged the discomfort many homeowners feel.
“Because nobody’s being notified about this, they’re not aware that it’s happening until after the fact,” he said. “It’s a very violating feeling.”
Aerial inspections often flag issues such as:
- Roof debris, moss, or discoloration
- Overgrown vegetation near structures
- Blocked gutters or drainage issues
- Cluttered yards or visible deterioration
- Drained swimming pools or yard damage
These conditions are often grouped under “deferred maintenance,” and they can trigger immediate non-renewals.
“Some of my clients have come to me after they’ve been dropped by their insurance company following an aerial inspection,” Mullett said.
Why Insurers Say This Is the Future
Despite growing backlash, industry experts agree this trend is not temporary.
“Aerial technology has become an updated way for home insurance companies to perform inspections,” Susman said.
“It’s just a sign of the times,” Nguyen added.
With at least 17 insurers reportedly using aerial imagery for underwriting in California, this practice is quickly becoming standard — driven by the need to control costs and manage exposure in an unstable insurance market.
The Growing Privacy and Transparency Debate
Unlike scheduled in-person inspections, aerial surveys are conducted remotely and often without notice to homeowners.
This raises unresolved questions:
- Should homeowners be notified when aerial inspections occur?
- Should they have a right to opt out?
- How should disputed findings be handled?
Current California law requires advance notice before non-renewal, but not before aerial inspections.
“Because it happens without their knowledge, people feel blindsided,” Susman said. “It’s not that the technology itself is wrong — it’s the way it’s being implemented.”
What to Do If You’re Dropped After an Aerial Inspection
If your policy is canceled or non-renewed due to drone or satellite imagery, experts recommend acting immediately:
- Request the Inspection Evidence
Ask for all photos, satellite images, and underwriting notes used in the decision. - Fix the Issues and Document the Repairs
Address roof, vegetation, or maintenance problems quickly and provide before-and-after photos. - Ask for Reconsideration
Some carriers will reinstate policies if problems are corrected promptly. - Work with an Independent Broker
Brokers can pursue appeals or place coverage through alternate or surplus markets. - Know Your Legal Timeline
California law requires at least 75 days’ notice before a homeowner policy is non-renewed.
“You’re entitled to see what they’re making that underwriting decision based on,” Nguyen emphasized.
The Accuracy vs. Fairness Dilemma
Aerial inspections can improve accuracy, but they can also misinterpret what they see.
For example:
- Shadowing may appear as roof damage
- Temporary yard clutter may be flagged as neglect
- Seasonal vegetation may be mistaken for overgrowth
Without homeowner input, these automated flags can lead to unfair outcomes.
“It’s your best bet to get it fixed right away,” Susman said. “Because right now, carriers don’t have the option to underwrite based on conditions — it’s all or nothing.”
Why Insurers Are Intensifying Risk Prevention
From the insurer’s perspective, aerial inspections are a survival strategy.
California’s market has been destabilized by:
- Billions in wildfire losses
- Regulatory delays in rate modernization
- Rapidly increasing reinsurance costs
To stay solvent, insurers are aggressively reducing exposure and tightening underwriting standards.
“The insurance companies that are really trying to reduce their risk are using this drone footage to get an overall look,” Mullett said.
The Rise of AI and Aerial Underwriting
The next phase of this evolution is artificial intelligence.
AI systems can analyze millions of properties in seconds, evaluating roof age, vegetation density, and wildfire proximity. Combined with California’s upcoming Sustainable Insurance Strategy, this could lead to:
- Highly personalized premiums
- Visible mitigation-based discounts
- Tighter maintenance enforcement
Under this new model, what’s visible from above may directly determine your insurability.
The Bottom Line
Aerial inspections are now a permanent part of California’s home insurance landscape.
They are faster and cheaper for insurers and promise more precise risk evaluations — but they also raise serious concerns about transparency, fairness, and homeowner rights.
As ABC 10’s Jeannie Nguyen put it, “This is something all homeowners should start getting used to.”
For now, the best protection is vigilance. Maintain your property carefully, document all repairs, and respond immediately to any underwriting notice.
Because in today’s insurance market, your next renewal decision may be made not by an inspector at your door — but by a drone far above your roof.
