The New Hampshire Insurance Department published a bulletin informing insurers of the allowable use of aerial imagery as an underwriting tool.

The Department has received consumer complaints that insurers have nonrenewed or canceled their homeowners policies based on poor roof conditions mistakenly identified in aerial imagery. While property insurers are allowed to refuse coverage if there is evidence of roof degradation or damage, aerial imagery may not meet the evidence standard. The use of aerial imagery is allowed, but they must show definitive material damage to a roof to be used as a reason to nonrenew or cancel a policy.

Insurers cannot decline coverage based on cosmetic issues that do not affect the roof’s structural integrity. Images that simply show discoloration, streaking, or other cosmetic damage cannot be used as the sole reason to decline a policy. If aerial images do not show evidence of material damage, the insurer should perform a physical inspection to confirm the condition of a roof.