Aerial Imagery and Refusal to Write or Renew

The State of New Hampshire Insurance Department 21 South Fruit Street, Suite 14 Concord, NH 03301 David J. Bettencourt Keith E. Nyhan Commissioner Deputy Commissioner BULLETIN Docket #INS 25-016-AB TO: All Property & Casualty Insurance Companies FROM: Commissioner David J. Bettencourt DATE: February 19, 2025 RE: Aerial Imagery and Refusal to Write or Renew It has come to the Department's attention that some property insurers are refusing to write or renew property insurance policies due to underwriting conditions identified through aerial imagery. This bulletin provides clarity to insurers regarding the appropriate application of aerial imagery as an underwriting tool. In particular, the Department has received several complaints in recent months, in which certain carriers are refusing to renew homeowners’ policies, because of poor roof conditions mistakenly identified in aerial photographs. According to established underwriting guidelines, a property insurer has the right to refuse coverage if clear evidence of property degradation or damage exists. However, insurers cannot justifiably decline coverage based solely on cosmetic issues, such as roof discoloration, which do not fundamentally affect the structural integrity of the property. The Department does not seek to inhibit the use of aerial imagery. Insurers can freely employ this technology to evaluate a property’s condition. Yet, insurers must understand that aerial imagery, while useful, is not infallible and has its limitations. To safeguard consumers against unsupported underwriting decisions, insurers must implement appropriate checks and balances when using aerial imagery. If aerial imagery does not unequivocally demonstrate property degradation or damage warranting a refusal to write or renew, insurers must conduct a follow-up physical inspection to validate any suspected issues derived from aerial data. Furthermore, if an applicant or insured contests the insurer's findings—even if the insurer believes it has compelling evidence—conducting a physical inspection of the property remains necessary. The Department remains committed to ensuring fairness and transparency in the insurance process. By adhering to these guidelines, insurers protect consumers Telephone 603-271-2261 • Fax 603-271-1406 • TDD Access: Relay NH 1-800-735-2964 nh.gov/insurance while fostering a responsible and efficient insurance market. The market thrives when consumers receive fair treatment and can trust the processes that govern their coverage. Questions about this bulletin should be submitted to PropertyCasualty@ins.nh.gov. 2