California couple dropped by insurer over mossy roof photos from space, claim it’s just solar panels

Janice and Anthony Coleman, longtime homeowners in Fairfield, California, were shocked when Liberty Mutual, their home insurance provider of 20 years, sent a non-renewal notice. The reason? An aerial photograph from space, supposedly showing the roof, was used as justification.

Liberty Mutual claimed the roof had moss, mildew and algae growth, but the Colemans insist the alleged damage was simply their solar panels.

Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month

Lock in juicy quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

5 minutes could get you up to $2M in life insurance coverage — with no medical exam or blood test

"For being customers of 20 years, this is really a bad way to be treated," Janice Coleman told CBS News.

"I feel they made a decision based on technology just to reduce their portfolio and to offload our property as they are doing with thousands of others in the state of California," Anthony Coleman added.

The Colemans' story is one of many recent cases where homeowners feel unfairly targeted by insurers relying on advanced technology, like drones and satellite imagery, to assess risk. This practice is especially common in disaster-prone states like California, Texas and Florida. While these tools allow insurance companies to evaluate properties remotely, they can lead to errors, as the Colemans' situation shows.

According to Karl Susman, an insurance broker with over 30 years of experience, the increased use of aerial imagery is tied to insurers' bottom line.

“They’re effectively losing money,” Susman told CBS News, adding that companies are looking for any reason to drop policies to reduce their financial risk. And, it's perfectly legal.

California Insurance Code Section 676 requires insurers to provide a specific reason for non-renewal at least 75 days before the policy expires, allowing homeowners time to address issues or find new coverage. Using aerial photography helps companies justify the reasons for cancellation while keeping them on the right side of the law.

Despite hiring a roofer to confirm the roof was fine, Liberty Mutual refused to reverse its decision, raising concerns about whether the insurer is using these tools, like aerial imagery and AI, fairly.

Read more: These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes.

If you receive a non-renewal notice, it's important to know your rights and options. In 2018, California passed a mandatory one-year moratorium on non-renewals for residential insurance policies. If your area qualifies, your insurance company cannot drop your coverage. If you believe your insurance provider isn’t following the law, you can submit a consumer complaint to the California Department of Insurance.

To reduce insurance costs, you can take steps like removing vegetation around your home, installing a home sprinkler system or upgrading to a Class A fire-related roof. Increasing your deductible or bundling your home and car insurance policies can also lower premiums. Local insurers may also offer better rates, as they often have a more detailed understanding of regional risks.

If you can’t find coverage through traditional brokers, you can apply for insurance through the California FAIR Plan, a state-mandated program providing basic fire and property insurance for high-risk areas.

Medical debt is the leading cause of bankruptcy in America — just 3 minutes could protect you from disaster

Baby boomers bust': Robert Kiyosaki warns that older Americans will get crushed in the 'biggest bubble in history' — 3 shockproof assets for instant insurance now

The price of home insurance has skyrocketed to an average of $2,285 a year. But smart homeowners can save up to $980 a year – here’s how

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.