Homeowner outraged after insurance company cancels policy using Google Earth photos of house: 'I never asked for this'

Across the United States, insurers are dropping coverage and raising prices for homeowners, citing increasing risk due to extreme weather events tied to air pollution. Unfortunately, this is exactly the time when American homeowners most need their insurance policies, because these extreme weather events can cause expensive damage. In the midst of all this, an Illinois woman was horrified to discover that her insurance carrier had found an excuse to charge her thousands of dollars or drop her coverage, CBS News reported.

What's happening?

Roseanna Castillo of Kane County, Illinois, is an established client of Allstate Insurance. However, despite having no problems with her policy and not having filed any requests or claims, she received a demand that included a threat to drop her coverage in November.

Apparently, Allstate had used Google Earth to take pictures of Castillo's roof, which it used to claim that the structure was undergoing "granular loss." 

"In order for me to keep my policy, they want me to pay $18,000, and they gave me like a month and a half's notice to do this," Castillo told CBS News.

Why is this move from Allstate important?

The request came out of the blue. "I thought that this was absurd," Castillo said. "This is an unsolicited inspection on my home. I never asked for this."

If insurance companies can reevaluate their coverage of homes spontaneously, without input from owners or absent a filed claim, and abruptly decide to charge more money or drop coverage, then home insurance policies all across the country are at risk of ending prematurely, leaving owners high and dry. The next time a disaster strikes, people in this position might lose their homes unless they pay an incredible amount of money to keep their coverage. The financial pinch will have repercussions for people in all walks of life.

What's being done about protecting people's insurance coverage?

For Castillo, speaking to CBS News and filing a claim with the Department of Insurance caused Allstate to back down. "There was no longer a stipulation for me to keep my insurance, and my policy would renew like normal in November," she said.

CBS News also recommended asking your insurer for photos in this situation and filing a complaint if they are not provided.

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