Millions could be underinsured due to multiple structures on their property
San Francisco, CA; December 12th 2024 — ZestyAI, a provider of climate and property risk analytics solutions powered by AI, has released a new analysis of residential properties across the United States, revealing a startling proportion of homes with multiple structures that could be underinsured or uninsured.
ZestyAI sampled one million properties across the US using state-of-the-art AI and aerial imagery, and the results uncovered that 45% of the properties surveyed were found to contain more than one structure, underscoring the challenges that insurance carriers face in accurately assessing property risk.
Insurers often struggle to identify and assess every structure on a property, especially in cases where a third or fourth structure may remain undetected, even when a secondary structure is found. Many insurance carriers have previously needed to rely on traditional methods or basic property records, which can overlook secondary structures that may carry significant risk. Missing even one structure can result in inaccurate risk assessments, and any gap in identification can lead to overlooked risks, impacting coverage and claims.
Key findings:
- Prevalence of Multi-Structure Properties: While 55% of properties feature only a single structure, a notable 31% have two structures, 11% have three, and 4% contain four or more structures. These additional structures include detached garages and sheds, or outbuildings used for agriculture or other purposes.
- Regional Differences Impact Prevalence: The prevalence of multi-structure properties varies significantly by state, driven by zoning regulations, agricultural needs, and tourism. States such as Montana and Wyoming lead with 59% and 58% of properties, respectively, containing multiple structures. In contrast, Georgia (26%) and North Carolina (29%) report the lowest prevalence of secondary structures.
Attila Toth, Founder and CEO of ZestyAI, said: "Understanding the full scope of a property’s structures is critical for accurate risk management by insurers. Our findings underscore the importance of advanced analytics to help insurers ensure comprehensive coverage while managing risk effectively.
“These findings demonstrate how advanced analytics can reveal what might otherwise go undetected, giving insurers the data they need to better protect their customers. At ZestyAI, we are committed to using AI-driven insights to support carriers in making informed decisions, improving accuracy in coverage, and ultimately creating a safer, more resilient environment for policyholders and their communities."
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