Anyone who owns a home in Northeastern NC knows insurance is increasingly more challenging to obtain at reasonable rates. Every year prices go up, with insurance companies pushing for more and more money.
Now, homeowners all over the state of NC are getting dropped by the carriers. Some carriers are simply not insuring coastal areas like the Outer Banks anymore because of the risk.
However, as you may have seen on the news, insurance companies are utilizing new technology such as drones and satellite imagery to survey and assess their insured’s properties.
What Outer Banks Homeowners Need to Know About Surveillance in Insurance
As a homeowner, there is little we can do to prevent this from happening as consumer’s rights lag well behind technology at this point. Homeowners should be concerned about insurance companies’ latest tools, especially in areas like Dare and Currituck County, where our home insurance options are increasingly limited.
The Rise of Drones and Satellite Imagery in Insurance
Insurance companies have historically relied on property inspections to determine risk. Higher-risk insurance companies tend to do this more often than other companies who may only visit every few years or not at all.
Insurers perform these inspections to determine the risk and value of insuring a property. Up until recently, most of these inspections were done by an inspector on-site.
Now, insurers are relying more and more heavily on technology to assess.
Why Insurance Companies Use Drone and Satellite Images
Drones and satellite images provide insurers with a comprehensive view of a property. Often times, these images capture details that might be missed during a manual inspection.
Using aerial and satellite imaging is both more cost-effective and faster than manual inspections. Homeowners need to take notice and understand how this can impact them.
Higher Premiums and Non-renewals
Many homeowners are now receiving non-renewal letters unless they remedy the concern or issue addressed in the letter. Some are seeing their premiums skyrocket, while others are having to get different coverage with less protection.
Even folks who have been with a company for decades without any claims are being dropped. Detailed imagery from drones and satellites can detect risks that may not have been obvious.
For example, it may show a deteriorating roof or poor drainage around your property. It also shows vegetation, clutter, and undisclosed structures such as sheds, trampolines, or pools.
Any of these issues increase the risk of a property. Property owners are being outright dropped by their carriers or given a short timespan to take care of the issues.
Insurance Advice for Outer Banks Property Owners
Though it may seem like a violation of privacy, insurers at this time are within their legal right to use drones and satellite imagery to assess their risks. However, as a homeowner, you can be proactive.
Here are a few tips to make sure your OBX home remains insurable at the same level of coverage and minimize your risk of being dropped:
1. Regular Maintenance
Most damage, or what an insurance company might consider a risk, happens over time. Regular inspections of the inside and outside of your property are critical to the longevity of your home and exterior structures.
If you have an investment or rental property, don’t depend on property managers and maintenance companies. Most of the time, these companies are “putting out fires” and are less concerned with regular maintenance.
Your best solution is to regularly inspect yourself. If there is anything of concern, hire a licensed general contractor or even a home inspector (if you are considering selling) to inspect and assess.
Roof repairs, drainage issues, or anything that may compromise the structural integrity of your home should be addressed immediately. Also, be sure to report any major repairs such as HVAC replacement, new roof, or other major improvements to your insurance company so there is a record.
2. Renovate
Renovations improve not only the aesthetics of your property but also often address
potential risks insurers might flag. Drones and satellite images are capturing exterior risks … and, unfortunately, the exterior of many OBX homes is the last thing on many property owners’ minds.
Coastal climates are harsh on the exterior of your property and need renovation more regularly than inland properties. Choosing quality products installed by general contractors who are required to ensure current codes and inspections are performed is essential.
NC law requires that all projects – including labor and materials – over $40,000 must be done by a general contractor. More importantly, any work that impacts structural work or load-bearing, must be permitted.
Insurance companies will not cover claims related to unpermitted work, which means homeowners will be fully responsible. Work with experienced contractors to upgrade outdated systems, reinforce structural elements and enhance overall property safety.
This proactive approach can help you stay ahead of potential problems that could be identified through aerial inspections.
3. Communicate with Your Insurer
Open communication with your insurance provider is crucial. Sometimes, as a homeowner, you may not be financially prepared for an expensive repair.
However, your insurance company will often grant more time if they know you are actively working towards a resolution. If you receive notice of a premium increase or policy nonrenewal, ask for detailed explanations and imagery that led to the decision.
While these aerial images are another tool in your insurer’s toolbox, they are not always accurate. This transparency can help you understand the issues and take corrective actions if necessary.
Final Thoughts on Home Owners Insurance
While the use of drones and satellite imagery by insurers might be unnerving, there is little homeowners can do than limit their risks. More than ever, it is important for homeowners to be proactive in reducing and eliminating risks at their property.
As a homeowner, there is no way to prohibit the use of aerial imaging of your property. It is imperative that Outer Banks homeowners understand these technologies are being used and how to mitigate their risk by being proactive.
Now, more than ever, it is imperative for property owners to protect their investments. Utilizing experienced, local general contractors like Island Contractors to assist you is an excellent first step in reducing your risk and exposure.
Remember, the goal of insurers is not to catch homeowners off-guard but to ensure that properties are well-maintained and pose minimal risk. By working together with your insurer, a general contractor, and staying informed, property owners can better navigate this technological shift with peace of mind.
Partnering with licensed contractors for renovations and repairs can be a game-changer, ensuring your property remains in peak condition and insurable. This proactive approach not only safeguards your investment. Island Contractors is here to assist you with inspecting your property and taking care of any interior or exterior issues that might increase risks to your insurer.
All on-site consultations are free, so reach out today for more information. Island Contractors is ready to assist you.