The Rhode Island Department of Business Regulation Insurance Division published a bulletin providing guidance on the use of aerial and satellite imagery in underwriting and claims settling of homeowners insurance.
The Department does not restrict the use of aerial imagery, but it must be used fairly and responsibly. Insurers must ensure images are clear, accurate, and current (meaning no more than 15 months old) before relying on them in underwriting or claims decisions. Low-resolution or blurry images cannot be used to justify policy cancellations, nonrenewals, or claim denials. Images that merely show cosmetic damage also cannot be used to support cancellation or nonrenewal.
A policy cancellation or nonrenewal must be supported by evidence that shows significant material degradation that increases the risk of loss. If aerial imagery shows inconclusive evidence, the insurer should perform a physical inspection.
If an insurer uses aerial imagery as a basis for nonrenewal, it should provide the homeowner with copies of the images and give them a chance to dispute the accuracy of the images. Insurers should give loss control recommendations to the policyholder and give them a chance to make repairs before going through with the nonrenewal.
The bulletin can be found here.