ZestyAI, a provider of AI-powered climate and property risk analytics, has released a report showing that many residential properties in the United States could be underinsured due to multiple structures on the same property.
The analysis, based on a sample of one million properties across the country, found that nearly half of them contain more than one structure, potentially leaving gaps in coverage.
According to ZestyAI, 45% of the properties surveyed had more than one structure. This highlights a significant challenge for insurance companies, which may struggle to identify all the structures on a property.
While secondary structures, such as garages, sheds, or agricultural buildings, can be crucial in assessing overall risk, traditional methods of property assessment often miss them. As a result, insurers may not have a full understanding of the risks involved, leading to inaccurate coverage or claims issues.
The analysis also found variations across states. While 55% of properties had only one structure, 31% had two, 11% had three, and 4% had four or more structures.
Montana and Wyoming led the nation with 59% and 58% of properties, respectively, having multiple structures. In contrast, states like Georgia and North Carolina had lower rates, with 26% and 29% of properties, respectively, containing secondary structures.
Attila Toth, CEO and founder of ZestyAI, emphasized the importance of identifying all structures on a property to ensure proper risk management.
He noted that advanced analytics are crucial in helping insurers identify potential risks that might otherwise go unnoticed.
"Our findings underscore the importance of advanced analytics to help insurers ensure comprehensive coverage while managing risk effectively," said Toth.
He added that using AI-driven insights can help insurers improve accuracy and provide better protection for policyholders.
“These findings demonstrate how advanced analytics can reveal what might otherwise go undetected, giving insurers the data they need to better protect their customers. At ZestyAI, we are committed to using AI-driven insights to support carriers in making informed decisions, improving accuracy in coverage, and ultimately creating a safer, more resilient environment for policyholders and their communities," he said.
Do you think multi-structure properties should receive more attention in insurance assessments? Share your thoughts in the comments below.
