MD| The Maryland Insurance Administration’s Bulletin 25-10 clarifies that while insurers may use satellite or aerial imagery for property insurance cancellations, nonrenewals, or claim denials, such actions are only permissible when the imagery provides a clear, accurate, and current view of the property. Insurers must provide specific reasons for cancellation or nonrenewal and cannot rely on low-quality or outdated images; ambiguous imagery, such as roof discoloration, is insufficient without further investigation or evidence. Additionally, denying claims based on unclear imagery constitutes an unfair claims settlement practice, and insurers are encouraged to communicate with insureds and allow them to respond before taking adverse actions based on such images.
Key Points:
- Insurers may only use high-quality, current satellite or aerial imagery as grounds for cancellation, nonrenewal, or claim denial, and must provide clear, specific reasons to insureds.
- Low-resolution, blurry, or outdated images—or images showing only cosmetic issues—are not sufficient justification for adverse actions without further investigation.
- Denying claims based on unclear imagery is considered an unfair settlement practice, and insurers should give insureds an opportunity to contest or clarify the imagery before proceeding.