The Michigan Department of Insurance and Financial Services (DIFS) has issued Bulletin 2025-12-INS to guide how insurance companies can utilize aerial imagery—such as drone or satellite photos—when evaluating homeowners and dwelling fire insurance policies. Here’s a clear breakdown of what this means for insurers and policyholders.

What Is Aerial Imagery in Insurance?

Insurers may use aerial images to evaluate the condition of residential properties, particularly roofs, without needing a physical, on-site inspection. These images can influence underwriting decisions, policy renewals, cancellations, or premium adjustments.

Policyholder Rights and Protections

Images Must Be Accurate and Current
Insurers must base decisions on clear, up-to-date imagery. Blurry, outdated, or ambiguous photos alone are insufficient grounds for any policy action.
You Have the Right to Respond
Before taking adverse action—like cancellation or nonrenewal—based on aerial imagery, insurers must:
- Share the specific images with the policyholder.
- Allow the opportunity to review, challenge, or correct the findings.
Cosmetic Roof Issues Are Not Grounds for Cancellation
Superficial conditions like streaks, discoloration, or algae staining cannot be used as justification to cancel or refuse renewal.
Physical Inspections May Be Required
If aerial imagery suggests potential problems, insurers should conduct a follow-up in-person inspection before making any final determinations.

Underwriting and Rate-Setting Guidelines

Filing with DIFS
Insurers intending to use aerial imagery in underwriting or pricing must file their rules and practices with DIFS.
Annual Notifications to Policyholders
Each year, insurers must inform policyholders how to:
- Access information related to their premium calculations.
- Appeal underwriting decisions or file formal complaints.

Cancellations and Nonrenewals

Advance Notice Required
A minimum of 30 days’ notice is required for cancellations or nonrenewals unrelated to nonpayment.
Acceptable Grounds for Policy Termination
Policies may be canceled or not renewed only for specific reasons, including:
- Deteriorating physical property condition
- Change in property use or occupancy
- Emerging hazards nearby
- History of excessive claims
- Underinsurance or insufficient coverage
Use of Aerial Imagery in Terminations
If aerial imagery is part of the rationale, insurers must:
- Notify the policyholder that the decision is image-based
- Provide access to the images
- Allow a chance to respond or provide updated information

Have Questions or Concerns?

Contact the Michigan Department of Insurance and Financial Services (DIFS):

Phone: (877) 999-6442
Address:
Office of Appeals, Legal Research, and Market Regulation
530 W. Allegan Street – 8th Floor
P.O. Box 30220
Lansing, MI 48909-7720

Bottom Line

While insurers in Michigan may incorporate aerial technology to assess properties, they are obligated to do so fairly and transparently. Policyholders are entitled to clear communication, a chance to respond, and protection from unjust policy actions based on superficial or unverified image data.