The Alabama Department of Insurance published a bulletin providing information on the allowable use of aerial imagery in insurance activities, following in the footsteps of a few other states. The bulletin applies to homeowner, commercial property, and casualty insurance.

The Department first defines aerial imagery as photographs, videos, or other visual data captured using satellites, aircraft, drones, or other aerial platforms. The use of aerial imagery is permitted and can make the claims process more efficient; however, insurers should be aware of its limitations.

Aerial images can be blurry, outdated, or unclear in showing the damage to a property. When being used as a reason for nonrenewal or cancellation, or in claims handling, they should not be the only tool used. If, for example, an insurer is concerned about the condition of a roof because of aerial photos, they should follow up with a physical inspection. In addition, Insurers using aerial imagery to justify nonrenewal or cancellation of a policy should provide the policyholder with copies of the images to allow them a chance to dispute the accuracy of the images.