Smart Home Gear Can Save You Money on Home Insurance
June 4, 2024
I’ve been writing for quite a while about the benefits of smart home technology — all related to ways of improving lifestyle, automating mundane tasks, reducing utility costs and more. But another frequently overlooked aspect of investing in smart home technology is how it can impact home insurance.
It only makes sense that as technology can monitor home operations around things like security, water or smoke, insurance companies would be interested. Especially where mitigating the risk of potential hazards and losses are concerned. Smart home technology can save you money on homeowners’ or renters’ insurance. So if you’re still on the fence about some smart home tech or regarding smart home in general, check with your home insurance provider as it may help decide.
Here are some examples of smart home technologies that insurance companies are offering discounts or reduced premiums for:
Remote Monitoring and Security Systems
Smart home security systems equipped with cameras, motion sensors, and alarms allow you to monitor your home remotely. This can deter burglars and prevent theft, leading to lower insurance premiums due to reduced risk of break-ins.
Leak Detection Sensors
Smart water leak detectors can detect leaks early, preventing water damage and mold growth. Insurance companies may offer discounts for homes equipped with these devices, as they reduce the likelihood of costly water damage claims.
Smoke and Carbon Monoxide Detectors
Smart smoke and carbon monoxide detectors can alert you to potential dangers even when you’re away from home. Insurance providers may offer discounts for homes equipped with these devices, as they reduce the risk of fire and carbon monoxide poisoning.
Smart Thermostats and Energy Efficiency
Smart thermostats can help optimize energy usage by automatically adjusting temperature settings based on your preferences and occupancy patterns. By reducing energy consumption, you may qualify for insurance discounts aimed at environmentally friendly and energy-efficient homes.
Home Automation for Prevention
Smart home automation allows you to remotely control appliances and utilities, such as lighting, thermostats, and door locks. This can help prevent accidents like leaving appliances on or doors unlocked, potentially lowering insurance premiums by reducing the risk of damage or theft.
By investing in smart home technology, homeowners can mitigate risks, demonstrate responsible home management, and potentially qualify for discounts on their insurance premiums.
Many of the nation’s top insurance companies will offer discounts for smart home gear that can prevent property theft and fire or water damage. The discounts range from 5 to 20 percent, which fluctuate depending on where you live and the kind of device you’ve installed. The smart home product categories most insurance companies offer policy discounts on are:
- Home security systems
- Security cameras and video doorbells
- Smoke, fire, and carbon monoxide alarms
- Water leak sensors and smart shut-off valves
Insurance deals can vary greatly depending on your smart home devices and where you live. Most insurance companies simply encourage customers to call their local representatives for more information.
Allstate offers its customers up to a 5 percent “protective device discount” for items like a smoke detectors, fire extinguishers, connected security cameras, home security systems and water leak detectors. The validation process is different for each device, but generally you’ll want professional monitoring to have the best chances to qualify. Some devices, such as a burglar alarms with third-party monitoring, would need documentation, but a simple smoke detector would not.
Amica rewards policyholders with discounts for a wide variety of smart home tech that includes burglar alarms, smart temperature detection devices, smart security devices, fire and smoke alarms, electrical fault monitoring, as well as smart water leak detection tech. Amica also offers discounts from vendor partners like Moen, StreamLabs, Flume and Kangaroo. Per Amica, you’ll get the best discount for professionally monitored products.
Farmers Insurance has a 5 to 20 percent discount for smart home devices that reduce the risk of fire, theft or water damage. Bigger discounts are typically given to devices that have an outside signal and connection to local authorities.
Nationwide is able to give a smart home discount for select devices, depending on which state you live in. For the best discounts, they recommend you install devices from the following partner vendors: LeakBot, Notion, Phyn, Resideo, SimpliSafe, and Ting.
Progressive policyholders can earn discounts for alarm systems, including burglar and fire alarms. Centrally monitored security systems and automatic fire sprinklers might also be eligible for a discount, depending on your location.
State Farm offers a home security insurance discount if you install a fire, smoke or burglar alarm or any other home monitoring system. They are currently partnered with ADT to offer a special ADT Home Security Savings and Insurance Discount of up to 6 percent for a few select states.
Additionally, State Farm has expanded its Ting fire safety program where it provides a free Ting smart plug-in sensor to eligible customers. The plug-in sensor monitors your home for dangerous electrical arcing that could cause a fire. Installing a Ting won’t earn you a discount on your insurance, but customers who have one receive a $1,000 credit for professional remediation of electrical fire hazards if any is required.
Travelers’ policyholders can get a modest discount on their insurance premium if they install an alarm system, with greater savings if there’s third-party central monitoring rather than self-monitored systems. There also might be additional discounts if you have water sensors and emergency shutoff valves, such as a Flo by Moen or Phyn Plus.
These are just examples from some of the major insurance companies. If you don’t see your insurance company listed here I’d encourage you to call yours to find out what they’ll do for you should you decide to install a home security system or one or more of the home safety devices mentioned above. And if they don’t, maybe it’s time you shopped around for one that can give you a better deal!
Let Debbie and I know what you think in the comments, DMs and emails as we really enjoy hearing from you. Thanks again to all those following Debbie and I through our home building journey. It’s great to hear your success stories and suggestions as we move through the process. And if you like the content I’m posting each week, don’t forget to ‘Like’ and ‘Follow.’
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