Latest news with #InsuranceInformationInstitute
Yahoo
2 days ago
- Business
- Yahoo
Your Insurance Company May Be Using A Flying Drone Above Your House, And It's Honestly So Freaky
Every few years, I get a notice from my insurance company informing me that — usually unbeknownst to me — an inspector has strolled around my property looking for potential hazards or issues of concern to my insurer. The notice will sometimes include a list of things they want me to address, perhaps like a tree branch that's too close to the roof. Recently, I realized that my insurance company may be keeping tabs on my property in a way I never expected, by checking out my home from the air — and your insurance may be doing it, too. Some insurance companies are now using drones to do property inspections from the air. In some cases, insurers are using the results of these inspections to refuse to insure the property altogether. This may be especially concerning for property owners in certain areas at high risk of natural disasters, where insurance options may already be limited as insurers have been dropping customers. I talked to experts to find out why insurance companies are using drone inspections – and what you can do if an aerial inspection impacts you. Drone inspections are becoming more common. The use of drones for inspections on a widespread basis is becoming more routine. 'Property insurers have been using drone technology for many years in assessing damage from natural disasters such as hurricanes, tornadoes, and wildfires to process claims quicker,' said Mark Friedlander, senior director of media relations at the Insurance Information Institute. 'The technology is now being used by many national and regional insurers to inspect the exterior condition of homes in making underwriting decisions for the property.' Here's why insurance companies use drone inspections. For insurance companies, drone inspections offer several benefits. Friedlander noted that this approach is more efficient and precise than inspections performed by humans and avoids the risks or potential hazards involved when an inspector must physically walk around a property. Related: A Republican's Response To A "Tax The Rich" Chant At His Town Hall Is Going Viral When enlisting a drone to help with a property inspection, insurers are especially interested in checking out parts of the property that are difficult to see from ground level. In particular, this is a great way for an insurer to get a bird's eye view of the roof. 'They would see if there's any patches or cuts into the roof that will lead to a claim tomorrow,' Mike Koba, of Koba Capital Insurance Brokerage, said. Insurance companies have often used Google Maps to assess properties — but while those images may be several years old, a drone allows for real-time views of a property's current condition. Koba says insurers will sometimes perform an aerial inspection before deciding whether to insure a property at all — this is especially common with large commercial properties — but may also use this as part of the routine ongoing process to decide whether to renew an existing policy. In addition to checking out the condition of the roof or other major components, drone inspections can also reveal something on the property that your insurance company didn't know about. 'While the focus is primarily on roof condition, aerial inspections may also capture unreported additions to homes such as swimming pools, gazebos, and trampolines,' says Friedlander. 'In some cases, this type of discovery could result in a premium adjustment or disqualify your property from being insured if it no longer meets the carrier's underwriting criteria.' Related: "I Am So Torn With What You Are Doing" — 11 Posts From MAGA Business Owners Who Are So Close To Getting It What if a drone inspection finds an issue? If your insurer notifies you that a drone inspection revealed an issue, that doesn't necessarily mean you should panic or prepare for higher insurance premiums. Koba says insurance companies will typically give the property owner a short period of time — often around 45 days — to correct the issue. If you believe the insurance company's information is incorrect, you can also present evidence or documentation to prove the accurate condition of the property. Know your rights and options as a property owner. If you're like me, the idea of a drone checking out your property without your knowledge might give you Big Brother vibes, but experts say it is most likely perfectly legal for an insurer to inspect your property this way. Candise Shanbron, managing partner of Cernitz Law, says there are a variety of federal, state and local laws regarding the use of drones which in some cases prohibit drone users from conducting surveillance that would violate a reasonable expectation of privacy without the property owner's consent. However, she notes that there are often exceptions for licensed business entities that have a legitimate interest in the property — which would typically include insurance companies and insurance adjusters. While laws about what — if any — disclosures or advance warning an insurer must provide about drone inspections are in many cases vague and vary by location, Shanbron says insurers will often make customers aware of this possibility out of an abundance of caution to avoid any legal liability. Unfortunately, if an insurer decides to raise your premiums or cancel your policy based on issues found via a drone inspection, there's probably not much you can do about it from a legal standpoint, Shanbron said, as long as the insurer complies with any applicable laws regarding rates and coverage. If, however, an insurer tries to deny coverage of a claim based on a drone inspection (or any other grounds), she does encourage property owners to consult with an attorney specializing in insurance claims. This article originally appeared in HuffPost. Also in In the News: People Can't Believe This "Disgusting" Donald Trump Jr. Post About Joe Biden's Cancer Diagnosis Is Real Also in In the News: One Body Language Expert Spotted Something Very Telling When Donald Trump "Held His Own Hand" At His Recent Press Conference Also in In the News: Republicans Are Calling Tim Walz "Tampon Tim," And The Backlash From Women Is Too Good Not To Share
San Francisco Chronicle
4 days ago
- Business
- San Francisco Chronicle
Here are 17 activities State Farm considers too risky to insure under one California policy
What do corn mazes, mushroom farms and professional athletes have in common? They all have the dubious honor of being considered too risky to insure under a State Farm policy that offers extra liability coverage, per a filing earlier this year. The underwriting guidelines apply to the embattled insurer's California Personal Liability Umbrella Program, a product for policyholders who want protection beyond what's included in a basic personal liability policy. It provides a minimum of $1 million for covered claims, which could include liabilities like steep attorney's fees, damages from a lawsuit, or medical bills for someone the policyholder injured. State Farm requested a 39% rate hike for the product earlier this year, citing the need to offset rising claim costs stemming from 'more accidents, escalating medical bills and larger legal settlements,' a company spokesperson said at the time. State regulators have yet to decide whether to approve the hike. That request is separate from State Farm's home insurance rate increases; the company received approval from state regulators in May to temporarily increase rates by an average of 17% and is still pursuing a permanent 30% rate hike, which would add an additional 11%. State Farm stopped accepting new applications for the umbrella policy in California two years ago, according to the filing. But for customers considering renewing their coverage, State Farm's underwriting guidelines include a laundry list of disqualifying activities or characteristics. Some might not raise any eyebrows — applicants with prior fraud convictions are barred, for example — but other restrictions are more esoteric, like farms that offer Pick-Your-Own produce. Here's a selection of the sometimes eclectic list of traits and activities State Farm considers 'unacceptable': Highly specific underwriting guidelines for personal liability umbrella policies is not a new phenomenon, though insurers sometimes add new ineligibilities if they deem activities to have become riskier over time, said Janet Ruiz, a spokesperson for the Insurance Information Institute. She declined to comment specifically on State Farm's guidelines. Premiums for umbrella policies have increased in recent years in part due to rising medical costs, more lawsuits and occasional 'astronomical verdicts' in some legal cases, Ruiz said. She still recommends umbrella policies, especially for people with significant assets, but she is also hoping for tort reform to reign in rising legal payouts. 'It's an important balance,' Ruiz said. 'People should get paid for the damages, but when they get excessive amounts, we all pay for it, in the cost but also some of the exclusions.'
CBS News
29-05-2025
- Business
- CBS News
Florida homeowners urged to review insurance before hurricane season as options grow, premiums drop
As hurricane season approaches, South Florida residents like Daniel Benjamin and his wife, attorney Lindsey Abbondandolo, are taking steps to protect what matters most: their homes. On a quiet night in May, the couple sat in the dining room of their Cooper City home for what they call an "insurance check-up" — a review of their homeowners insurance to ensure their policy was up-to-date before hurricane threats rise. "The home is our biggest asset," said Abbondandolo, who handles insurance cases professionally. "Our home has everything we own in it, so protecting it should be our biggest priority." Florida's insurance landscape improves Despite three hurricanes — Debby, Helene and Milton — hitting Florida in 2024, the insurance market in 2025 is showing signs of improvement. According to Mark Friedlander, spokesperson for the Insurance Information Institute, more insurers are entering Florida's market, making coverage more affordable and competitive for consumers. "There are many new insurance companies coming to Florida and writing in South Florida, something we haven't seen in years," Friedlander said. "Florida consumers have more choices this year." The shift is largely credited to recent legislative reforms aimed at reducing insurance fraud, particularly involving roof claims and excessive litigation. As a result, more than a dozen new companies have started writing policies, many absorbing customers who previously relied on Citizens Property Insurance, the state-run insurer of last resort. "Citizens has reduced their exposure by 50 percent over the last two years," Friedlander said. "A healthier private market means new companies are now willing to take over Citizens' policies through the depopulation program." Smart shopping and flood protection Benjamin and Abbondandolo compared policy options and found better rates with a company offering discounts for features like leak detectors, impact windows, a new roof and a clean claims history. But they also made sure to have sufficient flood insurance, which is typically not included in standard hurricane policies. "Even if it's a hurricane, you need flood coverage because the type of damage can be caused by rising water, which is not covered by windstorm insurance," Abbondandolo said. Friedlander echoed that sentiment, emphasizing that flood risk in South Florida is constant. "If you live in South Florida, you're going to be prone to flooding," he said. "Whether it's a spring storm or king tides, you're always going to have a flood event throughout the year." The encouraging news for homeowners is that multiple insurers are now writing flood policies, often at competitive prices — another reason for residents to review and update their coverage before the storms arrive.
Yahoo
29-05-2025
- Business
- Yahoo
Triple-I's New Issues Brief Suggests Link Between Attorney Advertising, Mass Torts, Third-Party Litigation Funding and Rising Insurance Costs
MALVERN, Pa., May 29, 2025--(BUSINESS WIRE)--The Insurance Information Institute (Triple-I) has released its latest issues brief, Legal System Abuse and Attorney Advertising for Mass Litigation: State of the Risk, shedding light on the sharp rise in attorney advertising across the United States and the increasing influence of third-party litigation funding (TPLF) on the legal and insurance landscapes. According to research from the American Tort Reform Association (ATRA), legal service providers spent more than $2.5 billion on 26.9 million ads in 2024 alone – with significant increases in television, radio and outdoor advertising since 2017. TV ads peaked in 2023 with 16.4 million placements – a 44% increase from 2017. Radio ads surged to over 6.8 million in 2024 – a 261% jump from 2017 levels. Outdoor advertising, including billboards, rose by over 260%. While some of the overall rise in advertising spending (up 39% since 2020) can be attributed to increased digital costs, industry experts warn that the growing saturation of legal advertisements – often underwritten by third-party litigation funders – may be fueling legal system abuse, driving up insurance claims and delaying settlements. "Attorney advertising has become big business in the U.S., fueling explosive growth in the likes of multi-district litigation, which solicit anyone and everyone to join frivolous and expensive cases around anything from ear plugs to weed killer," said Sean Kevelighan, CEO, Triple-I. "These ads, often bankrolled by litigation funders, create urgency and overpromise outcomes, drawing in claimants who might not have otherwise considered legal action." There are hazards to attorney advertising, according to the Issues Brief. It creates a false sense of urgency, pressuring the target audience to take legal action, possibly without even considering other options; it overpromises results when implying guaranteed windfalls, creating unrealistic expectations and potentially impacting time to settle; and it influences potential juries, allowing attorneys to communicate plaintiff biased information, which can impact the way jurors process facts about the case. TPLF, in which dark money investors finance lawsuits in exchange for a portion of the settlement or judgment, has become a major force behind the surge in mass litigation. The infusion of capital allows law firms to scale up legal efforts, including expensive and widespread plaintiff recruitment through advertising. The economic potential of multidistrict litigation (MDL), combined with the high upfront costs of pursuing them, makes them an attractive vehicle for funders. The 2024 Westfleet Insider report estimates that TPLF assets under management reached $16 billion, with approximately 74% of commitments allocated to legal budgets – expenditures that can include advertising for plaintiff acquisition and case aggregation. Research by Yehonatan Givati and Eric Helland shows a direct correlation between ad volume and plaintiff participation in MDL cases, further suggesting a link between attorney advertising, often funded by TPLF, and litigation proliferation. They theorize that the increase in filings is not merely a result of competition between lawyers for cases but, rather, a genuine growth in the number of claimants. "Third-party litigation funding adds fuel to the big business of law fire," said Kevelighan. "By enabling broader reach and sustained legal action, TPLF may amplify systemic challenges, particularly in how insurers model risk and calculate premiums." Calls for Transparency and Reform Attorney advertising and third-party litigation funding are reshaping the legal landscape. In response, stakeholders are urging policymakers to balance access to justice by preserving the integrity of the legal system. Without greater transparency and oversight, the combined impact of mass tort advertising and external funding could further strain insurers, raise premiums, and erode public trust in the civil justice system. "Tripe-I continues to shine a light on legal system abuse, calling for more tort reform to wrangle in what's become out-of-control tactics by billboard attorneys who are exploiting Americans and increasing costs for critical household products and services," said Kevelighan. About the Insurance Information Institute (Triple-I) Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate, and connect consumers, industry professionals, policymakers, and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers, and reinsurers – serving regional, national, and global markets. About The Institutes The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. The Institutes is a registered trademark of The Institutes. All rights reserved. View source version on Contacts Loretta WortersNew York Press Office917-208-8842lorettaw@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
29-05-2025
- Business
- Business Wire
Triple-I's New Issues Brief Suggests Link Between Attorney Advertising, Mass Torts, Third-Party Litigation Funding and Rising Insurance Costs
MALVERN, Pa.--(BUSINESS WIRE)--The Insurance Information Institute (Triple-I) has released its latest issues brief, Legal System Abuse and Attorney Advertising for Mass Litigation: State of the Risk, shedding light on the sharp rise in attorney advertising across the United States and the increasing influence of third-party litigation funding (TPLF) on the legal and insurance landscapes. 'Third-party litigation funding adds fuel to the big business of law fire." According to research from the American Tort Reform Association (ATRA), legal service providers spent more than $2.5 billion on 26.9 million ads in 2024 alone – with significant increases in television, radio and outdoor advertising since 2017. TV ads peaked in 2023 with 16.4 million placements – a 44% increase from 2017. Radio ads surged to over 6.8 million in 2024 – a 261% jump from 2017 levels. Outdoor advertising, including billboards, rose by over 260%. While some of the overall rise in advertising spending (up 39% since 2020) can be attributed to increased digital costs, industry experts warn that the growing saturation of legal advertisements – often underwritten by third-party litigation funders – may be fueling legal system abuse, driving up insurance claims and delaying settlements. 'Attorney advertising has become big business in the U.S., fueling explosive growth in the likes of multi-district litigation, which solicit anyone and everyone to join frivolous and expensive cases around anything from ear plugs to weed killer,' said Sean Kevelighan, CEO, Triple-I. 'These ads, often bankrolled by litigation funders, create urgency and overpromise outcomes, drawing in claimants who might not have otherwise considered legal action.' There are hazards to attorney advertising, according to the Issues Brief. It creates a false sense of urgency, pressuring the target audience to take legal action, possibly without even considering other options; it overpromises results when implying guaranteed windfalls, creating unrealistic expectations and potentially impacting time to settle; and it influences potential juries, allowing attorneys to communicate plaintiff biased information, which can impact the way jurors process facts about the case. TPLF, in which dark money investors finance lawsuits in exchange for a portion of the settlement or judgment, has become a major force behind the surge in mass litigation. The infusion of capital allows law firms to scale up legal efforts, including expensive and widespread plaintiff recruitment through advertising. The economic potential of multidistrict litigation (MDL), combined with the high upfront costs of pursuing them, makes them an attractive vehicle for funders. The 2024 Westfleet Insider report estimates that TPLF assets under management reached $16 billion, with approximately 74% of commitments allocated to legal budgets – expenditures that can include advertising for plaintiff acquisition and case aggregation. Research by Yehonatan Givati and Eric Helland shows a direct correlation between ad volume and plaintiff participation in MDL cases, further suggesting a link between attorney advertising, often funded by TPLF, and litigation proliferation. They theorize that the increase in filings is not merely a result of competition between lawyers for cases but, rather, a genuine growth in the number of claimants. 'Third-party litigation funding adds fuel to the big business of law fire,' said Kevelighan. 'By enabling broader reach and sustained legal action, TPLF may amplify systemic challenges, particularly in how insurers model risk and calculate premiums.' Calls for Transparency and Reform Attorney advertising and third-party litigation funding are reshaping the legal landscape. In response, stakeholders are urging policymakers to balance access to justice by preserving the integrity of the legal system. Without greater transparency and oversight, the combined impact of mass tort advertising and external funding could further strain insurers, raise premiums, and erode public trust in the civil justice system. 'Tripe-I continues to shine a light on legal system abuse, calling for more tort reform to wrangle in what's become out-of-control tactics by billboard attorneys who are exploiting Americans and increasing costs for critical household products and services,' said Kevelighan. About the Insurance Information Institute (Triple-I) Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate, and connect consumers, industry professionals, policymakers, and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers, and reinsurers – serving regional, national, and global markets. About The Institutes The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. The Institutes is a registered trademark of The Institutes. All rights reserved.
