On October 14, 2025, the Tennessee Department of Commerce and Insurance (DCI) issued a bulletin regarding the use of aerial imagery. On April 2, 2026, the DCI updated Bulletin 25-03 to provide additional guidance on the use of aerial imagery by insurers.

The bulletin states that insurers must be mindful that aerial imagery has limitations and should not be the only tool used to gather information in the insurer's decision-making process. Insurers should ensure that any aerial imagery used to inform a decision is recent and accurate, as older aerial images may be unreliable or inaccurate. The DCI also referenced regulations related to unfair claims settlement practices and stated its position that denying a claim based solely on unclear or imprecise aerial imagery that does not accurately reflect the current status of the subject property constitutes an unfair claims practice.

The updated bulletin states that aerial images are no different than other images or other supporting data used in making determinations for policyholders and therefore should be kept by insurers to the extent required by Tennessee laws or rules governing insurers' recordkeeping practices. Additionally, insurers should communicate clearly with homeowners, allow homeowners an opportunity to review the evidence relied upon by the insurer, and give the homeowner an opportunity to provide responsive information.

Please see updated Bulletin 25-03 for more information. For any questions regarding the bulletin, please contact Will Kerby, Director of Insurance, at William.Kerby@tn.gov.