ASSEMBLYMEMBER LISA CALDERON TACKLES INSURERS' USE OF AERIAL IMAGERY TO NONRENEW HOMEOWNERS

The following information was released by the California State Assembly, Democratic Caucus:

Assemblymember Lisa Calderon (D-Whitter), Chair of the Assembly Insurance Committee, introduced Assembly Bill (AB) 1559, which seeks to protect California homeowners by providing transparency when aerial images of their homes are taken or obtained by insurers; affording homeowners rights to prevent the inappropriate use of these images to nonrenew their insurance.

"As the insurance crisis continues, it is imperative we do what we can to protect policyholders," states Assemblymember Calderon. "AB 1559 empowers homeowners by adding a layer of transparency when it comes to nonrenewals."

Aerial imagery, which includes images taken by drones, satellites, and airplanes, can help insurers conduct inspections and acquire detailed information that is not visible through a traditional home inspection. However, if used inappropriately, this technology can also lead to erroneous insurance policy nonrenewals based on inaccurate, outdated, or misleading images. A growing number of homeowners have faced this frustrating loss of coverage, with little recourse as these aerial images are often taken without the homeowner's knowledge, and do not reflect the condition of their property.

Assembly Speaker Robert Rivas, a co-author of AB 1559, adds, "Ensuring Californians can obtain and keep insurance is critical, and this bill reflects Assemblymember Lisa Calderon's continued leadership in protecting homeowners. I appreciate Lisa for delivering results and always defending our working families."

AB 1559 requires insurers to notify homeowners in advance of taking or obtaining aerial images of their property, and requires insurers to provide those images to the homeowners upon request. AB 1559 also prohibits insurers from basing decisions to cancel, non-renew, or reduce coverage on aerial images older than 180 days. Additionally, it provides several critical rights to policyholders who have been subject to adverse insurance decisions based on aerial images. This includes the right for policyholders to receive the images along with the notice of nonrenewal and the ability to request in-person verification of aerial images taken.

"Insurance companies are using aerial images to 'red-tag' homes for non-renewal, even when those images are incorrect or out of date. My Department's own investigations of consumer complaints have found serious flaws with companies' practices," said Insurance Commissioner Lara, who is sponsoring AB 1559. "Requiring insurance companies to be transparent with their policyholders can correct any errors upfront before people are harmed."