Although he describes himself as a “lazy homeowner,” Cahn maintains that he diligently handles the essential aspects of homeownership, such as upgrading electrical and HVAC systems and ensuring the safety and structural integrity of his property. But it came as a shock when he received a frantic message from his insurance broker informing him that his homeowners insurance policy had been cancelled. Upon checking his records and the Travelers Insurance website, he found no indication of the cancellation. “A few hours later, my panic turned to bewilderment,” Cahn explained in a recent op-ed. “When I finally reached my insurance broker, he told me the reason Travelers revoked my policy: AI-powered drone surveillance. My finances were imperiled, it seemed, by a bad piece of code.” Travelers Insurance had deployed a drone to survey his home and discovered moss on his roof. Cahn acknowledged the moss but insisted it was insufficient to compromise the roof's integrity. “Finally, in June, weeks before I knew my roof was being surveilled, I went to the hardware store, spent 80 bucks on moss killer, hooked the white bottle of chemicals up to the garden hose, and sprayed it on the roof,” he wrote. “The whole thing took about five minutes. A few days later, much to my relief, the moss was dying. I thought it was the end of an entirely unmemorable story.” It wasn’t. The insurance company's AI algorithm had incorrectly determined that the amount of moss on the roof rendered the property unsafe and thus uninsurable. Cahn's experience is not unique. Last month, a woman in Sacramento, California, who had spent more than $200,000 renovating her home reported that her insurance company of nearly 40 years canceled her policy after drone surveillance captured what the company termed an “increase in hazards with clutter or unsanitary conditions.” She said, “It almost feels like someone's looking in your windows, you know, when they tell you that they flew a drone over your home and looked at it. It's like, whoa." Insurance companies using drones to spy on homes is now a standard industry practice, according to a recent report from the Wall Street Journal (WSJ). In addition, companies are using manned airplanes and high-altitude balloons to capture images of properties. The programs are so pervasive, one insurance group’s imagery program covers 99 percent of the American population. Industry analysts predict the insurance drone market will grow to $2.6 billion by the year 2032. “We’ve seen a dramatic increase across the country in reports from consumers who’ve been dropped by their insurers on the basis of an aerial image,” Amy Bach, executive director of consumer group United Policyholders, told WSJ. Insurers typically look for issues such as damaged shingles, yard debris, overhanging tree branches, and undeclared swimming pools or trampolines. All of these can be used by underwriters as the basis for canceling someone’s policy.Albert Cahn is among a growing number of Americans who have found themselves at the mercy of corporations employing artificial intelligence technology.
