Millions of people could be underinsured due to multiple structures on their properties – Insurance News

San Francisco, California; December 12, 2024 — ZestyAIA provider of AI-powered real estate and climate risk analysis solutions, has released a new analysis of residential properties across the United States, revealing a surprising proportion of homes with multiple structures that could be underinsured or uninsured.

ZestyAI sampled one million properties in the US using state-of-the-art artificial intelligence and aerial imagery, and results revealed that 45% of properties surveyed contained more than one structure, underscoring the challenges facing businesses. insurance companies for accuracy. property risk assessment.

Insurers often have difficulty identifying and evaluating each structure on a property, especially in cases where a third or fourth structure may go undetected, even when a secondary structure is found. Previously, many insurance companies needed to rely on traditional methods or basic property registries, which can miss secondary structures that can carry significant risks. Missing even one structure can result in inaccurate risk assessments, and any gaps in identification can lead to risks being overlooked, affecting coverage and claims.

Key findings:

• Prevalence of properties of multiple structures: While 55% of properties feature a single structure, a notable 31% have two structures, 11% have three, and 4% contain four or more structures. These additional structures include detached garages and sheds, or outbuildings used for agriculture or other purposes.
• Regional differences impact prevalence: The prevalence of multi-structure properties varies significantly by state, driven by zoning regulations, agricultural needs and tourism. States like Montana and Wyoming lead with 59% and 58% of properties, respectively, containing multiple structures. In contrast, Georgia (26%) and North Carolina (29%) report the lowest prevalence of secondary structures.

Attila Toth, Founder and CEO of ZestyAI, said: “Understanding the full scope of a property's structures is critical for accurate risk management by insurers. Our findings underline the importance of advanced analytics to help insurers. insurers ensure comprehensive coverage while managing risk effectively.

“These findings demonstrate how advanced analytics can reveal what would otherwise go unnoticed, giving insurers the data they need to better protect their customers. At ZestyAI, we are committed to using AI-powered insights to help carriers make informed decisions, improve coverage accuracy, and ultimately create a safer, more resilient environment for policyholders and their communities.” .