The study revealed that nearly half of the surveyed properties contain multiple structures, many of which may be underinsured or entirely overlooked by traditional insurance assessments. Leveraging state-of-the-art AI and aerial imagery, ZestyAI analysed one million residential properties nationwide. The findings highlight a critical challenge for insurance providers: accurately identifying and assessing secondary and tertiary structures. Of the properties surveyed, 45% featured more than one structure, including detached garages, sheds, or agricultural outbuildings—structures often excluded from comprehensive risk evaluations.
Traditional methods of property assessment often fail to account for secondary or hidden structures, leaving insurers unable to provide comprehensive coverage. Even when one additional structure is identified, others may remain undetected, leading to gaps in risk evaluation and potential underinsurance for policyholders. While 55% of the properties analysed had a single structure, 31% had two, 11% had three, and 4% had four or more. Regional differences also play a significant role, with multi-structure properties more prevalent in states like Montana (59%) and Wyoming (58%), driven by agricultural and zoning needs, while Georgia (26%) and North Carolina (29%) reported the lowest prevalence of secondary structures.
Attila Toth, Founder and CEO of ZestyAI, emphasised the importance of these findings for the insurance industry. “Understanding the full scope of a property’s structures is critical for accurate risk management. Our analysis highlights the necessity of advanced analytics to ensure insurers can provide comprehensive coverage and manage risk effectively,” he said. Toth added, “These insights demonstrate how AI-driven analytics can uncover hidden risks, empowering insurers to better protect their customers while improving underwriting accuracy. At ZestyAI, we are committed to creating a safer, more resilient environment for policyholders and their communities.”
As the insurance industry continues to navigate the complexities of risk assessment, advanced AI solutions like those offered by ZestyAI are becoming increasingly vital. By identifying overlooked structures and providing actionable insights, insurers can bridge gaps in coverage, ensuring more comprehensive protection for millions of Americans.
