A bill moving through the California Senate Insurance Committee aims to strengthen consumer protections related to insurance companies’ use of drone and satellite imagery to evaluate properties. The proposed legislation focuses on improving transparency and ensuring policyholders are informed about how such images influence their insurance status.
Legislative Details and Requirements
The bill, introduced by Assemblymember Lisa Calderon (D–Los Angeles), would regulate how insurers utilize aerial imagery in lieu of in-person inspections. If enacted, the law would require insurance companies to:
- Notify policyholders that aerial images may be taken of their property.
- Provide those images upon request within 30 days.
- Limit the use of aerial imagery to photos taken within the past 180 days.
The legislation is a response to reports from homeowners who have received non-renewal notices based on drone or satellite images that were allegedly inaccurate or outdated.
Concerns About Data Accuracy and Fairness
Josephine Figueroa, Deputy Commissioner at the California Department of Insurance, testified that insurers have used imagery as old as 18 months to make underwriting decisions. She noted that the practice raises concerns about transparency and data accuracy.
“Policyholders should not have to fight to know when their property is being surveyed,” Figueroa said, adding that homeowners deserve clarity on how image-based data is used in coverage determinations.
Under the bill, homeowners would also have the right to request an in-person inspection if they dispute a decision based on aerial photos. However, the bill does not require insurers to give advance notice before conducting aerial inspections, nor does it allow policyholders to opt out of the practice.
Industry Response
Representatives of the insurance industry have expressed opposition to the bill, citing potential impacts on affordability and operational efficiency. According to Allison Adey, a lobbyist for the Personal Insurance Federation of California, drone and satellite inspections offer a low-cost alternative to physical site visits.
“In-person inspections can cost between $75 and $100,” Adey said in a May hearing. “Aerial imaging is a mere fraction of that cost.”
Adey argued that limiting the use of aerial technology may restrict insurers’ capacity to process policies efficiently and could increase overall insurance costs.
Data Privacy Issues
The bill also faces criticism from privacy advocates. Becca Cramer-Mowder, a lobbyist with the Privacy Rights Clearinghouse, voiced concerns that the legislation does not adequately address the handling of personal data collected through drone imagery.
According to Cramer-Mowder, insurance companies may sell these images to third-party data brokers, with potential consequences ranging from compromised sanctuary protections to increased vulnerability for individuals facing stalking or criminal targeting.
The bill currently lacks provisions for:
- Maximum retention periods for stored images.
- Mandatory deletion protocols.
- Requirements to blur individuals, neighboring properties, or limit usage beyond insurance.
“This bill legitimizes a surveillance practice that most homeowners are unaware of,” Cramer-Mowder said, warning of broader implications beyond insurance impacts.
Next Steps
Members of the Senate Insurance Committee acknowledged the privacy concerns raised during the hearing and stated they would continue working with opponents of the bill. The proposed legislation now moves to the Judiciary Committee for further consideration.
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