California proposes ban on aerial imagery for insurance non-renewals

As California's state legislature considers bills to facilitate home insurance claims estimates and payments, especially in natural disasters, another insurance consumer issue is also on the agenda.

California Assembly Bill 1559 would prohibit insurers from using aerial imagery as a basis for not renewing home insurance policies. 

A press release issued by the bill's co-author, assembly member Lisa Calderon, stated that aerial imagery, if used inappropriately can cause "nonrenewals based on inaccurate, outdated or misleading images." The release noted that homeowners whose policies are not renewed based on aerial images have little recourse, and the images are often taken without their knowledge.

Currently, 14 states have laws governing the use of aerial imagery for home insurance coverage and renewal decisions, according to Nearmap. Aside from California, Indiana has a legislative proposal made on January 5 and Oklahoma's insurance commissioner is including a provision in bills being submitted to the legislature this year. Texas has a law that will take effect in July. Colorado, Mississippi and New York have regulations that include guidance on the use of aerial imagery. 

The National Association of Insurance Commissioner's model bulletin on insurers' use of AI, which can be applied to the use of aerial images, has been adopted by 13 states that do not have their own specific regulation on the subject, while 17 remaining states have no aerial imagery regulation and have not adopted NAIC's AI guidance.

Most of the states that have aerial imagery laws passed them in either 2024 or 2025. The laws and bills vary in their guidance for how new the images being used must be, ranging anywhere from six to 24 months.

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