State lawmakers to try again on standards for insurers' use of aerial images

Takeaways:

• Model for state laws would allow 60 days to address conditions from aerial images
• 16 states have guidance from regulators, with eight states considering laws
• Provisions generally include opportunity to address conditions

An organization of state legislatures will try again in April to agree on regulation for insurers' use of aerial images to determine home property coverage.

The National Council of Insurance Legislators (NCOIL) P&C Committee may reintroduce its Model Act Regarding Insurers Use of Aerial Images, which failed in a September 2025 vote, according to Pat Gilbert, director of policy, administration and member services, NCOIL. The Council has put a discussion of the issue on its agenda for its spring meeting April 16-19.

The previous version of the proposal required non-renewal notices to include date-stamped aerial images of the property, noting steps the policyholder can take to reverse the non-renewal, and allowing at least 60 days to address the conditions from the images.

Louisiana passed a law in 2024 regarding insurers' use of aerial imagery. Texas and Florida have passed privacy laws addressing the use of aerial images, but their provisions are not specific to insurance. According to individual states' websites, 13 states have bulletins or guidance issued by insurance regulators about the use of aerial images, and Colorado is currently reviewing proposed guidance. Among those states, Massachusetts has a bill being considered in its legislature. Six other states also have bills being considered, including New York, California, Georgia, Washington, Indiana and Oklahoma.

The regulatory bulletins generally address how recent the images must be, ranging from as short as five months to as long as 24 months, explained Paige Waters, partner at the Troutman Pepper Locke law firm. 

"They also want to make sure that the images are clear and concise and can actually document the property that's being viewed," she said. "If it's blurry or it's inconclusive, the bulletins state that they need to use other methods of adjusting a claim."

Often, regulations about insurers' use of aerial images also address potential bias, such as using images of surrounding properties and their condition to justify not covering an entire zip code, according to Waters. 

Regulatory bulletins also address insurance companies' transparency with policyholders about the images used in coverage decisions. This includes providing policyholders with copies of the images and an opportunity to remedy conditions being cited for increasing premiums or not renewing coverage, Waters added.

Insurers need to make sure they retain collected aerial images should there be a regulatory inquiry, according to Waters. "In a claims market conduct exam, if there was an adverse determination that was based on aerial imagery, the examiners may say they want to see copies of those images that were used to adjust this claim," she said.

Some states have set conditions for using aerial images for coverage decisions, or are considering doing so. Pennsylvania requires a physical inspection of property along with aerial images before a decision. California's legislature is considering banning the use of aerial images completely. Texas' legislature considered a bill last year that would have required 60 days notice if aerial images would cause non-renewal of a home policy, but the bill did not pass.