Invasion of Privacy Lawsuits: Homeowners Insurance Companies Using Drones?

Attorneys working with ClassAction.org are investigating whether homeowners insurance companies are violating their policyholders’ privacy by using drones to conduct aerial inspections of their properties.

Specifically, some policyholders have reported receiving letters, emails or other communications from their insurance companies telling them to make pricey repairs to their homes or risk losing their policy or having their rates increased. In some cases, the companies reportedly provided aerial photographs of the covered properties, potentially taken by drones. The attorneys believe these aerial inspections may be an illegal invasion of privacy, and they’re now looking into whether class action lawsuits can be filed over the suspected practice.

Customers Complain About Drone Use by Insurance Companies

Homeowners insurance customers have complained to local news outlets and on Reddit and other online forums about insurers’ use of drones to demand home repairs.

According to a report by a local NBC outlet, almost every building in the U.S. is photographed using drones or satellites as part of the Geospatial Insurance Consortium, an insurer-funded group that provides aerial imagery to the insurance industry. One homeowner reportedly told the NBC team that her insurance company sent her an email stating that “imagery data” provided by a third party raised concerns about the risk of a future loss on the property and that she must either repair or replace her roof in order to retain her policy.

A North Carolina homeowner told another local news outlet that she received a call from her homeowners insurance company demanding that she replace her driveway and roof and clean out her chimney. Another North Carolina homeowner who received a letter from her insurer about replacing her roof and driveway said she was told by a company representative that drones are being used by many insurance companies to detect damage.

According to a report from a local CBS outlet, there has been “a dramatic increase” in reports from home insurance customers who were told they would lose their policies if they failed to make repairs based on information collected by drones and similar technology.

Indeed, homeowners have posted on Reddit.com and other online forums about their experiences, with some claiming the apparent drone use was an invasion of their privacy and others stating they believed that their insurance was unfairly dropped based on aerial images that were outdated or failed to accurately represent their home’s condition.

Below is a sampling of complaints posted on Reddit [sic throughout]:

Is it legal for my insurance company to fly a drone over my house and take pictures? Farmers insurance did this and didn’t notify me in advance. Once they took the pictures they then explained to me that based on what they found I would need to get a new roof in 3 months of my insurance would be cancelled. I can’t even get a roofing company to come give me an estimate in 3 months. Has anyone else had this happen? It feels like they crossed the line here but I don’t know.”
— r0ck3tf1r3, Reddit.com

This happened to me and I almost had my homeowners insurance canceled until I could prove that the stains they saw on my roof were not evidence of damage. it cost me $500 to get the roof cleaned and provide proof”
— RunnrB, Reddit.com

Got kicked off my insurer for a 'unapproved heating unit' in the back of my property. It was a barrel... There is no way someone could've seen it from the road.”
— The_Flint_Metal_Man, Reddit.com

Absolutely true. I removed a deck and was in the process of replacing it. Insurer sent me a letter saying they were canceling my coverage because there were no steps out the back doors anymore. So I canceled the coverage and went with another carrier. Turned out the coverage was a bit cheaper and a lot better coverage. So there.”
— Queasy_Pickle1900, Reddit.com

Had this happen. No renewal without repairs; policy expires in 6 mos. Just a sudden multi-thousand expense.”
— TrainsDontHunt, Reddit.com

I've lived in my home for 20 years. The insurance flew a drone over my house, said my roof had some mold, and cancelled my insurance. The mortgage company will pull our loan if we can't get insured.”
— Interesting-Pair784, Reddit.com

How Could a Class Action Lawsuit Help?

If filed and successful, a class action lawsuit could help affected homeowners get back money for any invasions of their privacy. It could also force the insurance companies to end any improper use of drones to determine their insurance coverage.

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