Aug 28, 2024
A family in San Carlos, California, is facing an impossible decision: spend more than $40,000 to remove a nearly 500-year-old heritage white oak tree in their backyard or find new homeowners insurance. Their insurance company, Safeco, part of Liberty Mutual, apparently spotted the tree via aerial photos and issued a non-renewal notice.
The family's frustration is based partially on the lack of communication. They received no notice of aerial inspection, no photos to back up the insurance company's decision, and no warning that the tree's state posed a risk to their policy. Now, they're scrambling for a solution.
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"I just am discouraged and frustrated by the lack of courtesy and understanding from a company on something that is almost 500 years old," homeowner Will Heieck-Toms said to CBS News Bay Area. "Come knock on my door. I'm happy to sit down and have a conversation … I just don't appreciate [the decision] being so unilateral."
The family's situation is becoming increasingly common as insurance companies rely on technology, like drones and satellite images, to take photos of properties rather than inspecting them in person.
Insurance companies are increasingly relying on aerial photos
The use of aerial photos to inspect properties has been on the rise in recent years. These photos allow insurance companies to assess the condition of a property and identify potential risks. "This is nothing new, as far as looking at homes and looking at properties at renewal," insurance expert Karl Susman told CBS. "It's just the idea feels a little bit awkward and a little weird and strange to have, you know, not know when it's happening," said Susman.
Safeco argues that aerial photos are a useful tool for identifying issues that might go unnoticed. A Safeco spokesperson told the television station, “We cannot comment on an individual customer, but we have to understand the condition of the property, and satellite imagery is useful to identify issues we and homeowners otherwise don't know exist.”
While the use of drones, satellites, and planes to take aerial photos is efficient, it also raises concerns with homeowners. Third-party aerial imagery services often leave consumers in the dark about how their property is being evaluated. Additionally, decisions based on these images can be inaccurate or lack the context an on-site evaluation would provide.
For the Heieck-Toms, that context includes the resources they've invested in ensuring the tree's health.
"We really consider ourselves the custodians of this tree," said Liz Heieck-Toms. For decades the couple have worked with a tree expert to maintain the tree. "When we got here, the canopy was over the top of the house," said Will. "... we've taken probably 40-50% of this tree away.”
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The Heieck-Toms have until December to find a new insurance provider, and it's not been easy, with one company offering "half the amount of coverage for almost three times the price."
"I feel like the insurance companies are just using things like this as an excuse because they don't want to be insuring homes in California because of all the fires and stuff," said Liz.
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What homeowners can do
If you're a homeowner facing a non-renewal notice from your insurance company, the situation can be scary and overwhelming. However, there are several steps you can take to protect your home and possibly maintain coverage.
Homeowners should immediately contact their insurance company and request detailed information or the specific images used to make the non-renewal decision. Understanding the exact issue and speaking with the insurance company will determine your next steps.
Correct any inaccuracies with the insurance company. Aerial images can sometimes misinterpret features or fail to capture recent updates or changes to the property. For example, photos taken just after a storm might show debris on a roof that was later removed.
Finally, make sure you understand your rights. For instance, in California, insurers must notify you at least 75 days before your policy expires. They also cannot cancel your policy if it has a guaranteed renewal provision or if you live in an area adjacent to a recent wildfire. If your insurer has not followed the regulations or you feel like the non-renewal is unfair, you should report it to the authorities.
Don't wait too long to shop for a new insurance plan since it could take longer than you expect.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
