The New Hampshire Insurance coverage Division (NHID) has issued a bulletin clarifying the suitable use of aerial imagery in property insurance coverage underwriting, notably relating to choices to refuse to put in writing or renew insurance policies primarily based on roof situation. This steering ensures that insurers apply truthful and correct practices when using aerial imagery as an underwriting software.
Current complaints obtained by the NHID point out that some property insurers have relied on aerial imagery to justify nonrenewals primarily based on mistakenly recognized roof circumstances. The up to date bulletin reaffirms that whereas insurers could refuse to put in writing or renew insurance policies attributable to clear proof of property degradation or harm, they could not accomplish that solely primarily based on beauty points similar to roof discoloration.
The NHID acknowledges that aerial imagery is a worthwhile software for assessing property circumstances however emphasizes that it’s not infallible. To make sure equity and stop unsupported underwriting actions, the bulletin directs insurers to implement correct checks and balances when counting on aerial imagery. If aerial imagery doesn’t conclusively display roof degradation or harm adequate to justify refusal to put in writing or renew a coverage, insurers should conduct a follow-up bodily inspection to confirm their findings. Moreover, if an applicant or insured disputes the insurer’s dedication—even when the insurer believes the aerial imagery to be conclusive—a bodily inspection is required.
“Issuing this steering displays a constructive step towards safeguarding the pursuits of New Hampshire’s residents,” stated Insurance coverage Commissioner DJ Bettencourt. “In a world the place know-how regularly advances, we should be sure that property insurers stability innovation with accuracy. Relying completely on aerial photographs with out the credibility of correct data can result in choices that don’t serve the general public curiosity. By insisting on bodily inspections when applicable, we uphold the integrity of insurance coverage practices whereas defending Granite Staters from unfounded coverage choices. This method not solely maintains equity and accountability but additionally contributes to encourage the form of innovation that generates value financial savings, benefitting each business and customers alike.”
“These updates not solely defend customers but additionally present clear expectations for insurers using superior instruments like aerial imagery,” stated Deputy Insurance coverage Commissioner Keith Nyhan. “The NHID stays dedicated to selling transparency and equity in New Hampshire’s insurance coverage market.”
A replica of the Bulletin is supplied under:
