The Pennsylvania Insurance Department published a notice on the allowable use of aerial imagery by homeowners insurers. The Department has received consumer complaints that insurers have nonrenewed or canceled homeowners policies based on the condition of the roof, but in many cases relied on aerial imagery which did not definitively show material damage. 

The Department is not restricting the use of aerial imagery, but insurers should show definitive material damage to a roof to be used as a reason to nonrenew or cancel a policy. Images that simply show discoloration, streaking, or other cosmetic damage should not be used as the sole reason to nonrenew or cancel a policy. If aerial images do not show evidence of material damage, the insurer should perform a physical inspection to confirm the condition of a roof. 

The Department has also received complaints from insureds that insurers are not providing them with the specific reasons for the nonrenewal or cancellation of a policy. Providing insureds with an explanation is essential in helping them take corrective action. The Department reminds insurers that they are statutorily obligated to do so under the Unfair Insurance Practices Act. The requirements include:

• An insurer must state the legal and factual reason for nonrenewal or cancellation in the notice of termination
• An insurer may cancel or nonrenew a policy if there has been a substantial change in the risk
• Prior notice and an opportunity to remedy a hazardous condition is required when the hazard may not be obvious to the insured
• The mere suspicion that something has changed is not cause for nonrenewal
• Simply characterizing a condition of a property as unacceptable is not permitted; the insurer must prove that the risk has increased and that the increase is substantial

The notice can be found here.