Solar Panels or Moss? How Aerial Errors Lead to Policy Drops

Lisa Mailhot  |  October 30, 2024

Buyers

Solar Panels or Moss? How Aerial Errors Lead to Policy Drops

 

In a surprising twist, California homeowners Janice and Anthony Coleman found themselves battling their long-standing insurance provider when Liberty Mutual incorrectly identified their solar panels as "moss and mold growth." Despite hiring a roofer to verify the roof’s integrity, the couple's appeal was denied, leaving them scrambling for a new, pricier policy.

Aerial technology, like drones, has become a common tool in insurance assessments, used to quickly review potential risks and property conditions. However, mistakes like the Colemans’ experience highlight the downside: errors can lead to unexpected policy cancellations and higher costs for customers who have held policies for years.

Why Insurance Companies Rely on Aerial Technology

Aerial surveillance enables insurers to evaluate roof age, tree hazards, property size, and wildfire risks without ever setting foot on the property. Alex Adekola, CEO of ReadyAdjuster, explains,

“Drones are commonly used to capture aerial imagery,”

allowing carriers to "improve their underwriting accuracy." Yet, this same technology can sometimes misrepresent real property conditions, like mistaking solar panels for roof damage.

With $59.2 billion in storm-related insurance losses last year alone, insurance companies are doubling down on aerial assessments to mitigate risks—often leading to stricter criteria for policyholders. Insurance advocates argue these assessments can ultimately reduce rates by identifying high-risk properties, but for some, they feel like an excuse to drop longtime customers.

Rising Policy Drops and Increased Costs for Homeowners

California's wildfire risks have led major insurers, including State Farm and Farmers Insurance, to limit or stop issuing new policies in the state, leaving fewer options for homeowners. Nichole Brink, a former insurance agent, highlights that decisions based on outdated aerial images are not uncommon.

“Dropping customers over old photos isn’t new,”

she noted, underscoring the potential cost-cutting motive behind such denials.

Homeowners like the Colemans are not alone, as aerial assessments increasingly impact policy renewals across the state. Jameson Tyler Drew, president of Anubis Properties, notes,

“Desk reviews are far cheaper and easier when making policy decisions,”

meaning aerial imagery can speed up decisions but at a potential cost to accuracy and customer satisfaction.

Steps to Take if Your Policy Is Dropped

If your insurance company drops your policy due to an aerial image:

  1. Request a Review: Contact your insurer, ask for the aerial image, and seek clarification on the identified issues.
  2. Correct Any Errors: If possible, resolve the concerns and request a reassessment.
  3. File a Complaint: For unresolved cases, reach out to your state’s Department of Insurance (DOI) for potential recourse.
  4. Consider an Independent Broker: Independent brokers can help compare rates and find alternative coverage options.

Proactive Measures to Avoid Future Cancellations

Homeowners can be proactive by asking their agents what steps might prevent issues during aerial assessments. Simple measures like trimming tree branches, removing potential hazards, and clearing debris could help maintain coverage.

Bottomline

Navigating the evolving landscape of insurance assessments can be complex, but there are steps you can take to safeguard your coverage. If you're thinking about a move to a new home, especially in California, it pays to stay informed. Let’s connect to explore options for securing your dream home.

 

 

Reference: Taylor, Julie. "Homeowners Dropped From Insurance Policy After Solar Panels on Roof Are Mistaken for ‘Moss’." CBS13, October 29, 2024.

RECENT BLOG POSTS

US Median Home Prices Hit Record High

The median sales price of a U.S. home has surged to a record high of $396,500, but with more homes on the market, buyers are in a stronger position to negotiate. Learn… Read more

Mortgage Applications Rise Slightly After Recent Decline

Mortgage applications have increased by 1.1% following a decline the previous week, signaling some shifts in the housing market. In this blog, we explore the latest mo… Read more

Longtime Homeowner? This Hidden Tax Could Cost You Thousands

Many longtime homeowners in Orange County are sitting on a hidden tax burden due to outdated capital gains rules that haven’t changed since 1997. Learn how this overlo… Read more

Home Prices Slow as Buyers Gain Power

May 2025 saw home prices at seasonal highs, but growth has nearly stalled as market dynamics shift. With more listings than buyers, slower sales, and increased negotia… Read more

What Home Sellers Must Know About Capital Gains Tax

Selling your home may come with a tax obligation if you earn a profit. Learn how capital gains taxes work, what exemptions may apply, and how to plan strategically to … Read more

Builders Struggling with Rates and Tariffs in May

The construction of single-family homes remained slow in May as builders face the dual challenges of high interest rates and tariff-related cost increases. Learn how t… Read more

Boost Your Home’s Value with These Paint Colors

Discover how strategic paint choices can increase the value of your property listings. A new Zillow study reveals the best colors to use for boosting home value. Find … Read more

Shrinking Down Payments Signal a Cooling Housing Market

Homebuyer down payments are shrinking for the first time in nearly two years, revealing key shifts in the U.S. housing market. FHA and VA loans are gaining popularity,… Read more

A Golden Break: States Offering Property Tax Relief for Seniors

With property taxes on the rise, senior homeowners are feeling the pinch—especially in high-value areas like Orange County. This blog explores how 16 states (plus D.C.… Read more

We are excited to assist you in finding your perfect home

Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most