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SAN FRANCISCO, Calif. (KGO) — Were you fired by your insurer because of the photos taken of your home? 7 On Your Side investigates an insurance company that did this and examines how it uses aerial photography to make decisions about a local homeowner's policy.
Liberty Mutual Insurance says it does not use “drones” to assess property risk. However, according to this report, the company somehow obtained aerial photos that were used as the basis for Karen and Tony Hoover's home insurance decisions. As the couple found out, the reason they were dumped turned out to be wrong.
Liberty Mutual has been insuring Hoover's San Francisco Victorian for nearly 50 years. By last month, they received a letter from the company claiming that aerial photographs had found “moss, mildew, algae and mold” on the roof.
“We have NEVER missed a payment since 1976,” said Karen Hoover. “They sent me some aerial photos that show absolutely nothing!”
“I couldn’t even believe it,” Tony said.
A close-up of the images provided by Liberty Mutual appear to be from Google Earth.
“All they do is show this picture of the entire roof – looking down,” Hoover said. “You can see that on the roof. You can’t see a single discoloration.”
But like any gullible homeowner, the Hoovers wanted to be sure.
“I wanted a clean report on our roof,” Karen said.
They hired Excelsior Roofing to perform a follow-up inspection – a licensed and reputable roofing company that has been in business in the city for more than 100 years. The company has an A+ rating with the Better Business Bureau.
7 On Your Side showed up. “Is the roof OK?” investigative reporter Stephanie Sierra asked.
“Perfect, I don’t see anything wrong with it,” the inspector replied.
“So no mold, no algae?” asked Sierra.
“Nothing at all,” said the inspector.
In fact, the inspector told the Hoovers that their roof would last another 20 years. And the report he prepared included more than a dozen photos from all angles, proving the “good” condition. Even close-up photos of the shingles, which are free of any growth.
“I’m angry,” Hoover said. “The lack of decorum and customer care.”
Therefore, the Hoovers appealed Liberty Mutual's decision, including the inspection report refuting the alleged problems. But for the last three weeks, the Hoovers heard nothing.
Until 7 On Your Side got involved and contacted the company's CEO directly.
His staff told us: “We are reaching out directly to Ms. Hoover to address her concerns. Home inspections have long been a standard in the insurance underwriting process, which can include aerial photography from an airplane.”
Within an hour of our further questions, the company reissued Hoover's insurance policy.
“Thank you 7OnYourSide from the bottom of our hearts!” said the Hoovers.
The couple is still frustrated that it took a news outlet to get answers after doing business with Liberty since 1976.
“We don’t trust them at all,” the Hoovers said.
Amy Bach, executive director of United Policyholders, a nonprofit insurance advocacy group, expressed frustration with the company.
“Liberty Mutual has disappointed us. “They don’t seem to be granting extensions to a lot of people and are giving, it seems, very inconsistent explanations as to why,” Bach said.
Bach said United Policyholders is pushing for legislation that would require insurers to be more transparent about non-renewals.
“Number 1 We want insurers to tell the homeowner what conditions on their property do not meet the insurance company's regulations. Second, give the homeowner a reasonable amount of time to correct these conditions. And third, if they fix these conditions.” “Offer them an extension policy,” Bach said.
To the Hoover family's disappointment, the family home across the street was also demolished due to the same roof problems.
“There was no way to fix it,” Tony said. “It simply means: 'We are not extending'.”
United Policy Holders wants to prevent such situations with its latest proposal. Bach says the legislation is already in the works and is expected to be introduced next session.
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