It may seem like the insurance industry is against consumers’ right to affordable insurance since they have been continuously raising the rates for homeowners insurance. For most people, the answer is to keep looking for better insurance options, trying to save money by bundling insurance, or raising deductibles to take on more risk. This may seem like the smarter way to go about saving money but in reality something more advanced and profitable has come about – in particular, aerial inspections by drones. There have been many technological advancements to assist in risk assessments that can also help in lowering insurance costs, but for now, the most novel is the use of real estate aerial photography drones.
From the insurance company’s viewpoint, the most hazardous area of a home is the roof. Severe weather can cause a lot of damage, and replacing a roof, is one of the most costly repairs an insurance company has to payout. If an insurance company is able to assess the damage on the roof of a home and do it with a drone, they may be able to offer you a discount on your insurance due to the overall insurability of your home. Using drones to assess conditions on the roof and provide updated information may also deter insurance companies from canceling your policy or offer you coverage for a lower cost.
How Insurers Value Drone Roof Inspections Aerial inspections of the home, especially of the roof may save the company money. For most companies, aerial inspections are something they have to pay as a third party. Aerial assessments of a home are improving due to details that are being made available to the companies, like in image stitching, and assessments that could contain aerial imagery. Using a drone to inspect your roof from an aerial vantage point is a more affordable and efficient way to assess your roof and will also provide more detailed results for you and your insurance company.
Tech Behind The Flight
Modern day inspection drones have high-res cameras, and sometimes thermal a thermal imaging sensors. They fly predetermined automated flight paths to capture every inch of a roof from different angles. The footage is processed in an AI software to help identify:
Shingles that are missing or damaged
Pooling water
Debris
Hail damage
Ventilation issues
Why Insurers value The Data
Insurance is a data driven business. As per LexisNexis Risk Solutions, almost half of home insurance loss is due to wind and hail. Therefore, it is not enough to just ask a customer “how old is your roof?”
What insurers appreciate about drone data is the “ground truth”. Companies like CAPE Analytics have demonstrated that using drones for home insurance underwriting and selecting houses drastically lowers loss ratio, up to two percentage points. This is because they are covering homes of a better quality. When you hand an insurer a drone verified, time-stamped report, it proves that your roof is in great condition, and you reduce the risk for the insurer. They may pass this savings down to you.
A Guide to Getting Inspected by a Roofing Drone
After receiving a home insurance policy, some homeowners claim to have a perfectly good roof. To lower their insurance premiums, these homeowners avoid purchasing a drone to fly over their property as insurance companies want inspectors’ reports to be fully verified and professional.
1. Work with a Professional Pilot
To comply with FAA regulations, commercial drone inspectors must have a Part 107 Remote Pilot Certificate. Pilot inspectors must be insured and licensed. This ensures the inspection report will be taken seriously by the insurance company.
2. Setting an Inspection Date
A drone roof inspection will be significantly faster than a manual inspection. The manual inspection may require hours of work while the drone inspection should only take 20 to 30 minutes once the pilot starts the drone. The pilot will have to fly the drone in a bounding box pattern to obtain orthomosaic imagery.
3. Reporting Results
AI-generated reports are the norm. Rather than summarizing the inspection as a thumbs up or thumbs down, the company will issue a Roof Condition Rating (RCR) along with other details to guide you in determining the condition of your roof. If the inspection has been performed, you will receive the report along with a photo of each area of the roof.
4. Submission to Your Insurer
Please submit this report to your insurance agent or carrier. Specifically, ask whether this validated proof of roof health qualifies you for discounts associated with protective devices, discounts based on roof age or condition, or a higher tier of underwriting.
How to Find Insurers Who Offer Discounts
Most insurers, especially new ones, don’t openly describe a “Drone Discount.” Discounts are often presented using different terms, including “Mitigation Discount.” They may also pertain to certain state insurance regulations. Here are several points for consideration when discussing this with your provider.
Mitigation Discount
Most states, especially those subject to hurricanes or high winds, including Florida, Alabama, and Louisiana, enforce discounting for certain wind mitigation features. While a drone inspection alone does not qualify you for a discount, it is often the only document needed to prove that your roof possesses certain wind mitigation features, like specific strap or shingle ratings.
Utilizing the ‘New Roof’ Rate
If the drone inspection verifies your roof is in great shape (even if only a few years old), you may be able to negotiate a rating as if your home had a brand-new roof. Insurance expert Karl Susman, in a report to CBS 8, indicated that new regulations in markets like California may begin to allow insurance providers to give more specific underwriting discounts for roof conditions that are verified, departing from the ‘all or nothing’ approach of just denying coverage on older roofs.
Using Your Data to Shop Around
If your insurance provider won’t consider your roof’s condition, and continues to overlook the drone report, simply use the report to secure a new policy. An inspection report adds considerable leverage to your requests for quotes to potential competitors who may be more than happy to insure a property they consider low-risk.
Aerial Intelligence Case Studies
Homeowners who are proactive about securing insurance policies will be in a better position as the insurance industry begins to adapt to the ‘predict and prevent’ approach.
Proactive vs. Reactive
In a recent report by CBS 8 San Diego, it was noted that insurers more frequently utilize their own drones and satellite images to determine policy non-renewals. Cancellation notices to homeowners were issued because aerial images showed moss or debris on the roof.
The Lesson: By contracting a drone inspection, you become proactive. You can identify and clean the moss or repair the minor flashing before the insurer notices it. This avoids a non-renewal notice, which is a significant financial “savings” by keeping you in the standard market, rather than being forced into the expensive high-risk pool.
Driving Efficiency is Impacting Premiums
Drones and advanced aerial analytics are being used by insurers to increase inspection action rates. In the case of CAPE Analytics, they have increased “action” rate on risky properties by 100% while keeping inspection costs stagnant. This may be strict, but it results in a more balanced and healthier risk pool. The more efficient an insurer’s underwriting, the more competitive their rates are to homeowners who actively maintain their properties.
Emerging Trends: The Future of Drones
The days of adjusters who climb ladders are numbered. This future of property insurance is fully automated, aerial, and driven by AI.
Automated Underwriting
Automated systems will evaluate roof conditions at every renewal. ‘Rooftop’ by LexisNexis Risk Solutions analyzes aerial images to estimate future claims. Homeowners who actively maintain their roofs will be rewarded with automated renewals that offer lower premiums compared to their roof-neglecting neighbors.
AI Detection of Material
Enhanced algorithms will identify individual shingles and track manufacturers from drone images. If you installed high-grade, impact-resistant Class 4 shingles, the drone will capture evidence and trigger the discounts associated with impact-resistant roofing materials.
Frequently Asked Questions
Can I fly my own drone for an insurance inspection?
While you can fly a drone over your house for recreational purposes, insurance companies will not accept a DIY report for underwriting. They will need an objective, third-party report to support a discount or underwriting decision.
How much does a drone roof inspection cost?
Costs can vary from $150 to $400, depending on the size of the roof and the location. Given that a standard roof deductible can be several thousand dollars, the documentation that an inspection provides can make the cost worthwhile.
Will a drone inspection find damage I didn’t know about?
Yes. Above the ground, drones can detect and locate thermal leaks and shingles with granular loss, which are undetectable issues from the ground. Identifying these problems early on can save significant costs down the line in avoiding water damage claims.
Manage Your Insurance Costs
Insurance is a necessary purchase from which we expect nothing in return, and is often seen as a purchase made with a loss in mind. Although, with a drone roof inspection, you can flip this way of thinking. Drones are capable of providing the information that will help insurers understand that your roof is an asset, rather than a liability. This information will help you avoid expensive roof coverage claims.
With a drone roof inspection, you will understand the roof liability coverage you can remove from your insurance. Contact an authorized drone roof inspection provider and protect your roof and your pocket.